Indonesia's January inflation picks up to 4.14% but less than expected

[JAKARTA] Indonesia's annual inflation rate rose in January but at a slightly slower pace than expected, and remained within the central bank's target range.

Consumer prices rose 4.14 per cent in January from a year earlier, largely due to higher food prices, the statistics bureau said on Monday.

That was faster than December's pace of 3.35 per cent, but less than the 4.20 per cent that economists polled by Reuters poll had expected.

Bank Indonesia is targeting 2016 inflation at 3-5 per cent.

Core inflation, which excludes volatile food and administered prices, eased to 3.62 per cent last month from 3.95 per cent a month before. Economists had expected 3.76 per cent.

On a monthly basis, consumer prices rose 0.51 per cent in January, compared with expectations of 0.64 per cent and December's 0.96 per cent.

Bank Indonesia cut its benchmark policy rate by 25 basis points on Jan 14 to try to boost an economy growing at its slowest pace since the global financial crisis.

It will hold its next policy meeting on Feb 17-18.

REUTERS