Indonesia Inflation Picks Up in September, in Line with Expectations

MACROECONOMICS - JAKARTA, Oct 1 - Indonesia's annual inflation rate accelerated slightly to 3.28% in September from 3.19% in the previous month, official data showed on Thursday, in line with market expectations and staying within the central bank's target range.

Rising prices of fuel and food like fish, chicken, chillies and rice contributed to price pressures in September.

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The figure compared to a rate of 3.3% expected by economists polled by Reuters.

The central bank targets inflation within a range of 1.5% to 3.5%.

The annual core inflation rate, which strips out government-controlled prices and volatile food prices, edged down to 2.84% in September from 2.92% in August. The median forecast in the poll was 2.91%.

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Bank Indonesia raised policy rates by 100 basis points between May and June to shore up the falling rupiah currency, limit imported inflation and make sure inflation stays within target until 2027.

The government's energy subsidies have also kept price pressures relatively benign, despite high global crude oil prices.