Jakarta. Indonesia’s annual inflation rate eased in February to its lowest point since December 2016 on the back of falling prices of some raw food products, the Central Statistics Agency reported on Thursday (01/03).
The headline consumer price index (CPI) rose by 3.18 percent on an annual basis in February, compared to a 3.25 percent increase in January.
The government has set an inflation target of 3.5 percent for the year, as outlined in the 2018 state budget, while Bank Indonesia's target is between 2.5 percent and 4.5 percent.
"Rising prices in almost all spending groups contributed to February's inflation rate drop, with the biggest being foods, drinks, cigarettes and other tobacco products," BPS head Suhariyanto said at a press conference in Jakarta.
On a monthly basis, the CPI slowed down to 0.18 percent in February from 0.62 percent in January, as the price of raw food, including red chili peppers, chicken meat and vegetables, dropped.
Rice and garlic however still accounted for most of the increase in food prices last month, but the harvest season in March is expected to tame prices, Suhariyanto said.
Meanwhile, the annual core inflation rate, which excludes government-controlled and volatile food prices, slowed down to 2.58 percent from 2.69 percent in January. February marks the third month core inflation was below 3 percent.