Indonesia's annual inflation rises to 6-month high in December 2020

Indonesia's annual inflation rose more than expected at the end of 2020 to reach its highest level in six months.

Consumer prices accelerated 1.68% year over year in December 2020 following a 1.58% rise in the prior month, according to data from Statistics Indonesia. This was the highest level since June 2020, when inflation was at nearly 2%.

The consensus estimate of economists polled by Trading Economics was for a 1.61% annual increase last month. The Bank Indonesia's inflation target is 3%, plus or minus 1%.

Prices of food, drinks and tobacco increased 3.63% year over year, while those of personal care and other services grew 5.80%. Transportation costs declined 0.85%.

Core inflation, which excludes volatile and government-administered prices, softened to 1.60% from 1.67%.