Indonesia inflation rises to 4.58% in August

AFP News3 September 2012
Indonesia said inflation edged slightly higher in August as food prices rose during Eid al-Fitr celebrations
A customer buys chilis at a market in Jakarta. "Food is the biggest driver of inflation... August inflation is due to the Muslim fasting month and Lebaran (Eid celebrations)," the Central Statistics Agency said

Indonesia said Monday that inflation edged slightly higher in August as food prices rose during Eid al-Fitr Muslim holiday celebrations.

The consumer price index (CPI) came in at 4.58 percent last month, up from 4.56 percent in July, the Central Statistics Agency said.

"Food is the biggest driver of inflation... August inflation is due to the Muslim fasting month and Lebaran (Eid celebrations)," said agency chief Suryamin, who goes by one name.

Month-on-month inflation also edged up to 0.95 percent in August, from 0.70 percent in July.

Core inflation, which excludes volatile food prices, was 4.16 percent in August, easing from 4.28 percent the previous month.

The country's central bank, Bank Indonesia, has left its benchmark interest rate unchanged at a record low of 5.75 percent since February.