Indonesia: Inflation accelerates on the back of higher food and clothing prices
September 5, 2011
In August, consumer prices increased 0.93% over the previous month, which was above the 0.67% rise recorded in July. Prices were higher in all categories of the CPI basket, particularly in the food and clothing categories, which rose during the Muslim fasting month of Ramadan, a time which usually sees a seasonal spike in prices in the aforementioned categories. As a result of the pronounced price increase, annual inflation accelerated from 4.6% in July to 4.8% in August, which was above market expectations of 4.7%. Annual average inflation fell from 6.2% in July to 6.0% in August. As inflation remains contained, the Central Bank left the benchmark interest rate unchanged at 6.75% for an eighth straight month at its meeting held on 8 September.