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Indonesia central bank raises 2013 inflation target to 5%

Published on Nov 7, 2012 1:11 PM

JAKARTA (REUTERS) - Indonesia's central bank raised its 2013 inflation target to 4-6 per cent, higher than its initial target of 3.5-5.5 per cent, an official at the bank told reporters on Wednesday.

The revision was due to the government's plan to hike electricity tariffs next year, said Mr Perry Warjiyo, director of monetary research and policy at Bank Indonesia.

Annual inflation in October climbed to 4.61 per cent but remained within Bank Indonesia's 2012 target at between 3.5 percent and 5.5 per cent.

The central bank also estimated the 2012 current account deficit at 2 per cent of gross domestic product, as weak global demand hits exports from Southeast Asia's biggest economy.