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Friday, January 7, 2011

Indonesia cbank: confident core inflation under 5 pct this yr

Indonesia's central bank is confident that core inflation will not surpass 5 percent in 2011 and that the annual consumer price index will be around 6 percent, the upper end of its target, said Perry Warjiyo, director of monetary and policy research.

Indonesia's annual December inflation picked up to a 20-month high near 7 percent, though core inflation was stable at 4.3 percent year-on-year.

A deputy governor told Reuters in an interview last month that Bank Indonesia would not hesitate to tighten policy if core inflation neared 5 percent. Source: Reuters

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