Indonesia's April Annual Inflation at 4.33%, Below Forecast

INFLATION - JAKARTA. Indonesia's consumer price index in April rose 4.33% annually, data from the statistics bureau showed on Tuesday, slowing from 4.97% in March and slightly below expectations.

The annual inflation came slightly below the 4.39% predicted in a Reuters poll. On a monthly basis, the consumer price index rose 0.33%, compared to a 0.37% forecast and a 0.18% increase a month earlier.

The core inflation, which excludes government-controlled prices and volatile food prices, eased to 2.83%, below a 2.89% prediction in the poll and compared to 2.94% in March.

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Higher transportation fares and prices of fuel and some food commodities around the Islamic holy month of Ramadan contributed to April's inflation, Statistics Indonesia chief Margo Yuwono said, although the increase was more benign than the Ramadan month in previous years.

Indonesian Muslims typically increase their spending during the festivities and millions travel home to celebrate Eid al-Fitr, which was in late April this year and marks the end of Ramadan.

Lower prices of chillies due to harvest season capped the CPI increase.

Indonesia's central bank at its April meeting kept its benchmark interest rates unchanged for a third straight month, predicting headline inflation would be back within its targetof 2% to 4% sooner.