Indonesia's inflation rate picks up slightly in June

[JAKARTA] Indonesia's annual inflation rate accelerated slightly in June as demand increased in the days leading to the Eid al-Fitr celebrations at the end of the month, the statistics bureau said on Monday.

The consumer price index rose 4.37 per cent in June from a year earlier, the highest increase since March 2016. In May, the annual rate was 4.33 per cent. A Reuters poll had expected a rate of 4.29 per cent.

On a monthly basis, the inflation rate was 0.69 per cent in June, faster than May's 0.39 per cent, as consumer prices rose across the board, the bureau said.

But Mr Suhariyanto, the head of the statistics bureau, said the inflation rate this year during Eid was "more manageable compared with the past three years".

However, June's annual core inflation rate, which excludes government-controlled and volatile food prices, cooled to 3.13 per cent from 3.20 per cent in May. The poll had expected 3.21 per cent.

Indonesia's central bank targets annual inflation at 3-5 per cent this year. Bank Indonesia's next policy meeting is July 19-20.

REUTERS