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December 6, 2022: In November, Indonesia’s inflation eased but stayed over the central bank’s target range for the sixth consecutive month between rising food prices and increased transport fares, official data showed on Thursday.
The headline annual inflation rate, which reduces to 5.42% in November, reached 5.71% in October and 5.50% anticipated by analysts polled. Bank Indonesia’s inflation target range is 2% to 4%.
The annual core inflation rate, excluding government-controlled and volatile food prices, increased to 3.30% from 3.31% in October. The Reuters poll had anticipated a rate of 3.40%.
The most significant contributors to inflation were fuel prices, airfares and inner-city transport costs, Seitan, the deputy head of Statistics Indonesia, told reporters after fuel price adjustments in September.
Meanwhile, he said the price of rice, staple foodstuffs in Indonesia, was still rising in the previous month. Therefore, the pace had slowed.
Bank Indonesia is maintaining a front-loaded and pre-emptive interest rate policy in the coming year to control inflation, governor Perry Warjiyo said.
Wednesday at the central bank’s annual meeting with fiscal sector stakeholders.
BI sought to manage inflation anticipation, which Warjiyo said remained high, and steer core prices back into its target range within the initial half of 2023.
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