Indonesia's annual inflation rate increases again in May

A seller offers a chicken to a customer at a vegetable market in Jakarta, Indonesia, on June 2, 2017.
A seller offers a chicken to a customer at a vegetable market in Jakarta, Indonesia, on June 2, 2017. PHOTO: REUTERS

JAKARTA (REUTERS) - Indonesia's annual inflation rate climbed again in May to reach the highest in 14 months, data from the statistics bureau showed on Friday, 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 2016, according to the bureau, compared with April's rate of 4.17 per cent.

An increase 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 chili increased.

Core inflation rate, which excludes government-controlled and volatile food prices, went in a different direction and cooled to 3.20 per cent in May, from 3.28 per cent in April. The poll had expected a rate of 3.31 per cent.

Indonesia's central bank targets annual inflation at 3-5 per cent this year, but it has said the rate may reach the top of that range at the of 2017. BI's next policy meeting is scheduled for June 14-15.