Indonesia's Oct inflation rate picks up, fastest in 4 months

[JAKARTA] Indonesia's annual inflation rate in October rose more than expected to the fastest in four months, the statistics bureau said on Tuesday.

October's annual inflation rate picked up to 3.31 per cent from September's 3.07 per cent, data from the bureau showed. A Reuters poll had expected a rate of 3.29 per cent.

The consumer price index rose 0.14 per cent on a monthly basis due to rising chilli prices.

However, on an annual basis, the core inflation rate, which strips out administered and volatile food prices, cooled to 3.08 per cent in October, versus September's 3.21 per cent. The poll's median forecast for core inflation was 3.20 per cent.

Indonesia's central bank targets annual inflation at 3-5 per cent in 2016.

Low inflation was one factor which allowed Bank Indonesia to cut its benchmark rate last month for the sixth time this year to lift economic growth. The central bank's seven day reverse repurchase rate is currently 4.75 per cent.

REUTERS