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Indonesia inflation hits new seven-year high

CNA – Indonesia’s inflation rate in September accelerated to its highest since October 2015 due to higher transportation costs following a fuel price hike, statistics bureau data showed yesterday.

The headline annual inflation rate rose to 5.95 per cent in September, up from 4.69 per cent in August, but came in slightly lower than a 6.00 per cent rate expected in a Reuters poll.

The annual core inflation rate, which excludes government-controlled prices and volatile food prices, picked up pace in September to 3.21 per cent, compared with 3.04 per cent in August and 3.60 per cent forecast by analysts.

“September’s inflation was mostly affected by the rise in fuel prices and inflation in transportation sector,” head of Statistics Indonesia Margo Yuwono told reporters.

He warned that inflation could heat up further in October as a number of regions have not yet increased their transportation fares.

Indonesia raised subsidised fuel prices by about 30 per cent in early September as the government moved to rein in ballooning subsidy bills.

People shop at a mall in Jakarta. PHOTO: CNA

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