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A vegetable salesman recovers customer money during a transaction at a traditional market in Jakarta, Indonesia on May 2, 2019. REUTERS / Willy Kurniawan
JAKARTA (Reuters) – Indonesia's annual inflation rate is expected to accelerate in May compared to the previous month, as Ramadan and Aïd-Fitr were in the mix, when most Indonesians spend more on food and transport, revealed Thursday a poll Reuters.
The annual consumer price index (CPI) is expected to rise by 3.17%, according to the median forecast of 13 badysts polled by Reuters. This compared to the 2.83% inflation rate in April.
The forecast is broadly in line with Bank of Indonesia's (IB) estimate of 3.1% last month, which remains within the central bank's target inflation target of 2.5%. 4.5% in 2019.
The seasonal rise in prices was a "decent rise," said Andry Asmoro, Chief Economist of Bank Mandiri, as it is still below the BI inflation target, although some other badysts have noted that the inflation recorded this year during Ramadan is among the lowest in the year. a decade.
Ramadan began early May and millions of Indonesians celebrated the end of the month of Islamic fasting on June 5th. During the holy month, consumers generally spend more on food and clothing and travel to their hometowns.
On a monthly basis, the May inflation rate is estimated at 0.54%, up from 0.44% in April.
The annual core inflation rate, which excludes controlled and volatile food prices by the government, would set at 3.07% in May, compared to 3.05% in April, according to a median of 10 badysts.
Vote by Nilufar Rizki and Tabita Diela; Writing of Tabita Diela; edited by Gopakumar Warrier
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