Indonesia's February Inflation Rises, But Core Inflation Slows More Than Expected

INFLATION - JAKARTA. Indonesia's annual inflation picked up slightly in February, but its core inflation decelerated more than expected, data from its statistics bureau showed on Wednesday.

The Consumer Price Index rose 5.47% on a yearly basis in February, roughly in line with the median forecast in a Reuters survey of analysts of 5.44% and above January's 5.28%.

Core inflation unexpectedly slowed to 3.09%, compared with analysts' prediction that it would stay around January's level of 3.27%.

Rising prices of fuel, rice, cigarettes and air fares contributed to the acceleration of headline inflation.

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Indonesia's central bank has raised interest rates by 225 basis points since August to guide inflation back to within its target range of 2% to 4%.

At its February policy meeting, Bank Indonesia said headline inflation was expected to return to within the target band in September and core inflation was seen staying within target throughout the year.