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Indonesia's Nov inflation seen picking up on higher food, oil costs: poll

Tuesday, November 29, 2016 - 13:38
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Indonesia's annual inflation rate is expected to inch up in November due to higher food and energy prices, but remain inside the central bank's target range for 2016, a Reuters poll showed.

[JAKARTA] Indonesia's annual inflation rate is expected to inch up in November due to higher food and energy prices, but remain inside the central bank's target range for 2016, a Reuters poll showed.

Thirteen analysts surveyed expected consumer prices in November to rise a median 3.43 per cent from a year earlier, up from 3.31 per cent in October. If analysts are correct, November's rate would be the fastest in five months.

The annual core inflation rate, which strips out administered and volatile food prices, was forecast at 3.19 per cent for November, up slightly from 3.08 per cent in October.

Bank Indonesia's target range for inflation in 2016 and 2017 is 3-5 per cent but it has previously said annual inflation may ease to 3-3.2 per cent at the end of this year.

"On a yearly basis, inflation remains in check with the upward trend still intact," said Juniman, chief economist of Bank Maybank Indonesia.

Low inflation was one factor which allowed Bank Indonesia to cut its benchmark rate six times this year to lift economic growth. The benchmark seven-day reverse repurchase rate is currently 4.75 per cent.

REUTERS