Indonesia May inflation at highest in over a year

INFLATION - JAKARTA. Indonesia's annual consumer inflation rate picked up pace in May from a month earlier on the back of Ramadan festivities spending, data from the statistics bureau showed on Monday.

The Consumer Price Index last month rose 3.32% from a year earlier, the highest rate since April 2018, the bureau said. It accelerated from 2.83% in April and was faster than expected by analysts in a Reuters poll.

Analysts had expected an inflation rate of 3.17%, according to a median forecast from 13 analysts.

Bank Indonesia (BI) targets 2019 inflation within a range of 2.5-4.5%.

Millions of people celebrated the Islamic holy month of Ramadan in Indonesia, the world's largest Muslim population, which started early in May. Prices of food and transportation propped up the inflation rate last month, the statistics bureau said.

On a monthly basis, consumer prices rose 0.68%, the bureau said, compared with 0.44% in April.

The May annual core inflation rate, which excludes government-controlled and volatile food prices, was 3.12%, compared with 3.05% in April and 3.07% expected in the poll. 

Indonesia's central bank governor Perry Warjiyo said on Monday the country's inflation rate was expected to remain at a low level and under control.

The central bank has also maintained its year-end outlook on inflation at 3.1-3.2%, he told reporters. Bank Indonesia targets 2019 inflation within a range of 2.5-4.5%.