Indonesian inflation eases in October after religious festival ends

JAKARTA (Thomson Financial) - Indonesian consumer price inflation eased
slightly in October as prices of goods came off their highs now that the
celebrations marking the end of the Muslim fasting month of Ramadan are
over, an official said.

Demand for consumer goods usually picks up before and during the Eid
al-Fitr celebrations, which this year fell in mid-October.

The consumer price index was 6.88 percent higher in October than a year
before, compared to annual inflation of 6.95 percent in September, said
Rusman Heriawan, chairman of the Central Bureau of Statistics.

The CPI was 0.79 percent higher than in September.

In the first 10 months of the year, the CPI rose 5.24 percent.

The inflation data were within the expectations of analysts.

"After rising in the first two weeks, most prices of goods were declining
in the third and fourth weeks," Heriawan told a press briefing.

"Had we only used the prices at the second week, month-on-month inflation
could have been more than 1.0 percent," he said.

Prices of fresh food increased 1.87 percent from September, prices of
processed food, beverages and tobacco rose 0.51 percent, prices of
clothing rose 2.05 percent and housing costs rose 0.21 percent.

Healthcare costs increased 0.45 percent, costs of education, recreation
and sport rose 0.21 percent and prices for transportation, communication
and financial services rose 0.4 percent.



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