JAKARTA- Indonesia’s inflation rate in September accelerated to its highest since October 2015 due to higher transportation costs following a fuel price hike, statistics bureau data showed on Monday.
The headline annual inflation rate rose to 5.95 percent in September, up from 4.69 percent in August, but came in slightly lower than a 6.00 percent rate expected in a Reuters poll.
The annual core inflation rate, which excludes government-controlled prices and volatile food prices, picked up pace in September to 3.21 percent, compared with 3.04 percent in August and 3.60 percent forecast by analysts.
Indonesia raised subsidized fuel prices by about 30 percent in early September as the government moved to rein in ballooning subsidy bills.
Indonesia’s central bank in its September meeting hiked policy interest rates by 50 basis points in efforts to control inflation which it expected to peak at slightly above 6 percent and core inflation at 4.6 percent by the year-end, compared to its target range of 2 percent to 4 percent. — Reuters
