JAKARTA- Indonesia’s annual inflation rate rose to 2.18 percent in January, climbing to be within the central bank’s 2 percent to 4 percent target range for the first time in nearly two years, data from the statistics bureau showed on Wednesday.
January’s rate was also the highest since May, 2020, with food prices rising the most. A Reuters poll had expected a rate of 2.15 percent in January, while December’s rate was 1.87 percent.
The annual core inflation rate, which excludes government-controlled and volatile prices, rose to 1.84 percent in January, compared with 1.56 percent in December. The poll had forecast 1.71 percent.
Indonesia’s annual inflation rate hit an 18-month high in December, reaching 1.87 percent, driven by rising prices of foodstuff and plane tickets, data issued by the country’s statistics bureau showed on Monday.
A Reuters poll had expected a rate of 1.80 percent in December. The previous month’s inflation rate was 1.75 percent.
Bank Indonesia is targetting inflation to be within a range of 2 percent to 4 percent for 2021 and 2022.
Indonesia’s economic growth slowed more than expected to 3.51 percent in the third quarter of last year, as mobility restrictions to control a deadly COVID-19 wave hit business activity and spending, official data showed.
Indonesian authorities imposed strict virus containment measures in July to late August in response to a spike in infections. Analysts polled by Reuters had expected growth to cool to 3.76 percent in the July-September quarter from a year earlier, compared with a 7.07 percent expansion in the previous three months. – Reuters
