Indonesia annual inflation slightly quickens in May
Jakarta - XINHUA
Indonesia's consumer price index accelerated slightly in May as processed foods prices picked up, allowing the central bank to keep implementing a tight monetary policy.
The national statistic bureau announced on Monday that the inflation in May stood at 7.32 percent, rising from 7.25 percent at the previous month.
"The prices of processed foods and beverage, tobacco and transport rose in May," head of the bureau, Suryamin, told a press conference at the bureau headquarters.
On month, inflation also increased to 0.16 percent in May, after falling 0.02 percent in April, he said.
Core inflation, excluding volatile prices for items such as food and government-regulated prices for products including fuel, chalked up higher at 4.82 percent in May on a yearly basis, from 4. 66 percent in the previous month, Suryamin said.
The central bank estimated that inflation would stand at 3.5 to 5.5 percent this year.
The bank governor board is to meet at the beginning of this month and may keep its benchmark interest rate on hold at 7.50 percent as the bank governor Agus Martowardojo has said that the bank insist on keeping implementing a tight monetary policy this year in a bid to guard the Southeast Asia's largest economy from possible risks of the global economy amid efforts to narrow the current account gap.
The bank has aggressively risen its benchmark interest rate by 1.75 percentage points to 7.50 percent from last June to November, which has been successful in putting Indonesia on a right course to fare better among the emerging economies battered by capital outflows.
The Indonesian Ministry of Finance forecasts the country's economy to expand by 5.7 to 6 percent this year, Bambang Brodjonegoro, deputy finance minister, has said.
Last year the Indonesian economy expanded by 5.78 percent and in the previous three years it grew by more than 6 percent.