Indonesia's May inflation at highest in over a year

[JAKARTA] Indonesia's annual consumer inflation rate picked up pace in May from a month earlier on the back of Ramadan festivities spending, data from the statistics bureau showed on Monday.

The Consumer Price Index last month rose 3.32 per cent from a year earlier, the highest rate since April 2018, the bureau said. It accelerated from 2.83 per cent in April and was faster than expected by analysts in a Reuters poll.

Analysts had expected an inflation rate of 3.17 per cent, according to a median forecast from 13 analysts.

Bank Indonesia (BI) targets 2019 inflation within a range of 2.5-4.5 per cent.

Millions of people celebrated the Islamic holy month of Ramadan in Indonesia, the world's largest Muslim population, which started early in May. Prices of food and transportation propped up the inflation rate last month, the statistics bureau said.

On a monthly basis, consumer prices rose 0.68 per cent, the bureau said, compared with 0.44 per cent in April.

The May annual core inflation rate, which excludes government-controlled and volatile food prices, was 3.12 per cent, compared with 3.05 per cent in April and 3.07 per cent expected in the poll.

REUTERS