JAKARTA : Indonesia’s inflation eased in November but stayed above the central bank’s target range for the sixth consecutive month amid rising food prices and higher transportation fares, official data showed on Thursday.
The headline annual inflation rate eased to 5.42 per cent in November, compared with 5.71 per cent in October and 5.50 per cent expected by analysts polled by Reuters. Bank Indonesia’s inflation target range is 2 per cent to 4 per cent.
The annual core inflation rate, which excludes government-controlled prices and volatile food prices, edged lower to 3.30 per cent from 3.31 per cent in October. The Reuters poll had expected a rate of 3.40 per cent.
Among the biggest contributors to inflation, were fuel prices, air fares and inner city transportation costs, Setianto, the deputy head of Statistics Indonesia, told reporters, following fuel price adjustments in September.
Meanwhile, the price of rice, a staple food in Indonesia, was still rising last month, although the pace had slowed, he said.
Bank Indonesia (BI) would maintain a front-loaded and pre-emptive interest rate policy next year to control inflation, governor Perry Warjiyo said on Wednesday at the central bank’s annual meeting with financial sector stakeholders.
BI was seeking to manage inflation expectations, which Warjiyo said remained high, and steer core inflation back into its target range within the first half of 2023.