• Indonesia inflation hits 6.79%

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    JAKARTA: Indonesia’s inflation accelerated to 6.79 percent in April spurred by higher fuel costs after global oil prices rebounded, official data showed on Monday.

    The year-on-year consumer price index rose from 6.38 percent in March, the statistics agency said.

    At the start of the year, Southeast Asia’s biggest economy almost completely abolished a decades-old fuel subsidy regime—which had proven to be extremely costly—and let prices float with the market.

    The decision came at a time when oil prices had fallen dramatically, and prompted steep drops in the price of fuel and a slowdown in inflation.

    However, global oil prices rebounded by about 20 percent in April owing to several factors, including concerns about unrest in Yemen, the weakening dollar and fewer US rigs in operation.

    Pump prices in Indonesia rose, as did the price of public transport.

    “The biggest contributor to inflation is the petrol price,” said statistics agency chief Suryamin, who like many Indonesians goes by one name.

    Slowing inflation in February prompted the central bank to cut its key rate by 25 basis points, to 7.50 percent, as it sought to boost growth which has sunk to a five-year low.

    However, the move caused the rupiah to plunge, and the bank has maintained the rate at the same level since.

    AFP

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