Indonesia's inflation rate seen rising in Jan

JAKARTA: Indonesia's annual inflation rate likely accelerated in January due to rising food prices, a Reuters poll showed.

The median forecast of 11 analysts in the poll is for January headline inflation of 4.20 percent. After a 7.26 percent pace in July, the annual rate dropped to 3.35 percent in December.

Maybank Global Market Group, who predicted a 4.18 percent rate for January, said the main driver of higher inflation is increased prices for foods ranging from beef, rice and fruit to instant noodle.

Juniman, its chief economist, wrote that the increase stemmed from "reduced food supplies due to climate change" and import tariffs on some items.

However, analysts expected core inflation, excluding volatile food and administered prices, to ease to 3.76 percent from 3.95 percent due to falling transportation costs after the government cut fuel prices.

On a monthly basis, consumer prices probably rose 0.64 percent, the poll showed.