Indonesia December inflation slows to 4.3 percent

Inflation in Indonesia slowed in December, an official said Wednesday, with fuel subsidies keeping consumer prices tame throughout the year.

Year-on-year inflation slowed to 4.3 percent while month-on-month inflation eased to 0.54 percent, Central Statistics Bureau chief Suryamin told reporters, adding that the month-on-month figure was the lowest for two years.

November consumer prices rose 4.32 percent from a year earlier.

David Sumual, an economist from Bank Central Asia, said steady prices were in part attributable to the government's failure to raise subsidised fuel prices as expected in March, after mass rallies across the country.

"But for 2013, putting into account the plans to raise electricity prices and wages, I think full-year inflation would hover around 5.3 percent," Sumual told AFP.

Prices are expected to creep up mid-year as electricity rates rise gradually, to hit a 15-percent increase by year-end, and as wage rises of up to 44 percent are paid to factory workers in major industrial hubs, analysts said.

The statistics office said the main drivers for December inflation were food, cigarettes and transportation.

  • COMMENT: Xenophobia rears its ugly head in Singapore once more 8 hours ago
    COMMENT: Xenophobia rears its ugly head in Singapore once more

    Kirsten Han is a Singaporean blogger, journalist and filmmaker. She is also involved in the We Believe in Second Chances campaign for the abolishment of the death penalty. A social media junkie, she tweets at @kixes. The views expressed are … Continue reading →

  • Driving a $900,000 Porsche 918 Spyder to the future 11 hours ago
    Driving a $900,000 Porsche 918 Spyder to the future

    It’s more than just its inherent speed, or the whooshing noise that fills the cabin like a school choir jamming with James Hetfield. It’s what it represents in an industry full of skeptics. It’s a portal into the future – a time capsule left by some mad scientist born decades too soon. It’s something that shouldn’t exist. And yet it does.

  • 919 reasons to love: Flickr photo of the day 12 hours ago
    919 reasons to love: Flickr photo of the day

    We've brought you the drive video of the $900,000 Porsche 918 Spyder -- an 887-hp hybrid supercar with two electric motors working in harmony with a big 4.6-liter V-8. But how about this? Porsche's hybrid Le Mans racer -- the 919 Hybrid, sent to us by Kevin Leech. Get on board with electrification, folks. Because it's taking over the world.