Indonesia Nov inflation climbs to highest in 7 months

[JAKARTA] Indonesia's annual inflation rate in November accelerated to the fastest in seven months, more than expected, the statistics bureau said on Thursday.

The consumer price index in November rose 3.58 per cent from a year earlier due to rising prices of shallots, chillies and tomatoes, the bureau said. A Reuters poll had expected a rate of 3.43 per cent, while October's pace was 3.31 per cent.

On a monthly basis, consumer prices rose 0.47 per cent.

The core inflation rate, which strips out administered and volatile food prices, was steady in November at 3.07 per cent, barely changed from October's 3.08 per cent.

Indonesia's central bank targets annual inflation to be maintained between 3 per cent and 5 per cent this year and next.

Low inflation was one factor which allowed Bank Indonesia to trim its benchmark rate six times this year by a total of 150 basis points.

The central bank held its benchmark rate steady at 4.75 per cent at its November policy meeting, citing rising global economic uncertainty.

REUTERS