by Stefanno Sulaiman and Gayatri Suroyo
JAKARTA (Reuters) – Indonesia’s inflation rate fell more than expected in August, official data showed on Thursday, but economists Inflation will pick up, and further rate hikes are likely in anticipation of higher fuel prices.
President Joko Widodo has been considering raising the price of fuel subsidies to curb ballooning energy subsidies amid high global oil prices and a weakening rupiah.
Inflation in Indonesia fell from 4.
to 4. in August due to some food prices falling % % A month ago, Statistics Indonesia data showed. A Reuters poll had expected a rate of 4.90% in August.
but excluding government-controlled prices and volatile food prices, annual core inflation accelerated to 3. 22%, from 2.60% in July, The highest value since November 2019.
The August rate was roughly in line with the 3% forecast in the poll.
Bank Indonesia (BI) targets 2022 and 2023 inflation between 2% and 4%, the The range’s governor, Perry Warjiyo, said it could exceed this year and next.
BI raised its benchmark policy rate by last month since 2018, a move some economists believe was taken in anticipation of higher fuel prices.
The head of Statistics Indonesia, Margo Yuwono, said the increase in fuel prices could significantly increase price pressure as it also affects the prices of other goods and services.
Bank Mandiri’s Faisal Rachman says inflation could rise to 6% this year assuming subsidised gasoline prices rise 30 %, while the forecast is 4.60% No price increase.
“We see that BI still has room to move (base rate) up to
