Workers unload frozen tuna from a ship at Muara Baru Port in Jakarta on Nov. 1, 2016. (Reuters Photo/Beawiharta)

Indonesia's Oct Inflation Rate Picks up, Fastest in 4 Months

BY :NILUFAR RIZKI & HIDAYAT SETIAJI

NOVEMBER 01, 2016

Jakarta. Indonesia's annual inflation rate in October rose more than expected to the fastest in four months, the statistics bureau said on Tuesday (01/11).

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

The consumer price index rose 0.14 percent on a monthly basis due to rising chili prices. However, on an annual basis, the core inflation rate, which strips out administered and volatile food prices, cooled to 3.08 percent in October, versus September's 3.21 percent.

The poll's median forecast for core inflation was 3.20 percent. Indonesia's central bank targets annual inflation at 3 percent to 5 percent 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 7-day reverse repurchase rate is currently 4.75 percent.

Reuters

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