Indonesia’s April annual inflation at 4.33%, below forecast

A vendor serves a customer at a traditional market in Jakarta, Indonesia, Jan  2, 2023. REUTERS/Ajeng Dinar Ulfiana/File photo

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

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

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

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 chilies 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 target of 2 percent to 4 percent sooner.

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