The inflation rate of Indonesia is anticipated to have slightly increased in December, which is the first rise following a straight decline for five months but it is still in the range of the central bank target, based on a survey by Reuters.
The consumer price index (CPI) rose by 3.40 percent in December since last year compared to 3.30 percent in November, according to the median forecast from Reuters gathered from few economists.
The inflation rate was recorded to be at 0.48 percent on monthly terms and started to gain momentum from 0.20 percent in November.
Some economists mentioned increasing demand for goods and services during Christmas celebration antecedent to New Year holidays, which is the primary reason for inflationary pressure this month.
The Bank of Indonesia headline inflation forecasted rate ranges from 3.0 percent to 3.5 percent by the end of the year and adjusted to 2.5 percent and 4.5 percent in 2018.
According to the median prediction of some analysts for December core inflation, the annual core inflation rate excluding government-controlled and volatile food prices rallied marginally by 3.08 percent while the rate in November was 3.05 percent.
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