Indonesia inflation rises at fastest pace since September 2006

Jakarta (ANTARA News) - Indonesia's annual inflation accelerated at its fastest pace in more than one and a half years in April, driven by rising kerosene prices and a lower base last year, the government said on Friday.

The consumer price index (CPI) rose 8.96 percent in April from a year ago and was up 0.57 percent from March, Rusman Heriawan, chairman of the Central Bureau of Statistics, said at a news briefing.

"There was a shift (in inflationary pressure) from food to non food in April," he said.

Kerosene is widely used by poor Indonesian families but to reduce subsidy spending the government is encouraging poor families to switch to the cheaper liquefied petroleum gas.

The annual increase was the fastest since September 2006 when consumer prices rose 14.55 percent.

Heriawan said annual inflation could exceed 9.0 percent in May.

In March, inflation rose 8.17 percent from a year earlier and was up 0.95 percent from February.

The April figures were largely within market expectations. Ten economists polled by Thomson Financial had forecast a rise of 8.5 percent to 9.0 percent on year, and 0.2 percent to 0.5 percent for the month.

Heriawan attributed the higher annual inflation figure to the lower base in April 2007 when consumer prices dropped 0.16 percent. (*)

Indonesia's year on year inflation reaches 8.96% in April

JAKARTA, Indonesia's year on year inflation in April (April 2008 to April 2007) reached 8.96 percent, the National Statistic Bureau announced Friday.

Head of the bureau Rusman Heriawan said the inflation rate in April was 0.57 percent.

It was driven by the hikes of prices of goods and services, including unprocessed foods by 0.55 percent, processed foods, drinks cigarette, tobacco 0.86 percent, housing, water, electricity, gas and fuel 1.62 percent, health 1.88 percent, education, recreation and sport 0.13 percent, he said.

The cumulative inflation rate by April was 4.01 percent, said Heriawan.

Inflation occurred in 37 out of 45 cities, he said.