Indonesia posts 3.13pc inflation in December

Published: January 02, 2019 15:27:15 | Updated: January 04, 2019 11:33:20

Indonesian annual inflation posted 3.13 per cent in December, accelerated at a slower pace in the last month of the previous year, within the target range of the central bank in November.

The national statistics bureau announced on Wednesday that consumer price index touched a 3.13 per cent in December year-over-year, compared with a 3.23 per cent annual inflation in November.

The price hike of non-subsidized fuel contributed the most to the acceleration of prices last year, head of the bureau Kecuk Suhariyanto said.

"The commodity contributed, the highest, to the price hike was gasoline fuel which is not subsidized," he added.

The Indonesian government rose prices of several types of non-subsidized fuel on July 1, 2018, reports Xinhua.

The annualised core inflation, stripping off government-controlled and volatile food prices, ticked up to 3.07 per cent in December from 3.03 per cent in November, the official said.

Indonesia's central bank, Bank Indonesia, has extended tightening cycle by edging up its interest rate of 175 basis points to 6 percent since May 17 to shore up rupiah value against the greenback.

The central bank targeted inflation at the range of 2.5 to 4.5 per cent last year.

The government edged lower economic growth target in 2018 to the range of 5.17 to 5.4 per cent from the initial estimate of 5.4 per cent following the tightening policies.

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