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Indonesia's inflation rate seen at 14-month high in May: poll

Tuesday, May 30, 2017 - 12:05

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Indonesia's annual inflation rate likely increased again in May and reached a 14-month high, a Reuters poll showed, as price pressures intensified in the days leading to the Muslim fasting month of Ramadan.

[JAKARTA] Indonesia's annual inflation rate likely increased again in May and reached a 14-month high, a Reuters poll showed, as price pressures intensified in the days leading to the Muslim fasting month of Ramadan.

The poll's median forecast from 15 analysts was for inflation of 4.37 per cent in May, which would be the highest since March 2016. In April, the rate was 4.17 per cent.

The core inflation rate, which excludes government-controlled and volatile food prices, is also seen edging up in May, to 3.31 per cent from April's 3.28 per cent.

Indonesia's central bank expects this year's inflation rate to be near the top of its 3-5 per cent target range.

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To tame inflation, the government has said it will delay planned price increases until after the Eid al-Fitr holidays that mark the end of Ramadan.

The fasting month, during which Muslims fast from dawn to sunset, began on May 27. Traditionally, demand for food, clothing and transportation tickets rises just before and during Ramadan.

REUTERS

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