JAKARTA • Indonesia's annual inflation rate climbed again in May to reach the highest in 14 months, data from the statistics bureau showed yesterday, but the increase was slightly less than expected.
Consumer prices rose 4.33 per cent in May from a year earlier, the highest annual increase since March last year, according to the bureau, compared with April's rate of 4.17 per cent. A rise was anticipated because price pressures traditionally intensify in the days leading to the Muslim fasting month of Ramadan, which began on May 27.
On a monthly basis, the consumer price index rose 0.39 per cent as prices of food such as garlic, eggs, chicken, rice, meat and chilli increased. Core inflation rate, which excludes government-controlled and volatile food prices, went in a different direction and cooled to 3.2 per cent last month, from 3.28 per cent in April. The poll had expected a rate of 3.31 per cent.
Bank Indonesia (BI) targets annual inflation at 3 to 5 per cent this year, but it has said the rate may reach the top of that range at the end of this year. Its next policy meeting is set for June 14 to 15.