Indonesia's Jan CPI up 7.02 pct y/y, above forecast

* Jan CPI up 0.89 pct m/m, above forecast of 0.65 pct

* Jan CPI up 7.02 pct y/y, above forecast of 6.81 pct

* Jan core CPI up 4.18 pct y/y, below forecast of 4.25 pct

JAKARTA, Feb 1 (Reuters) - Indonesia's January consumer
price index from the country's statistics bureau. 

KEY DATA: 
 CPI          (y/y pct change)   (m/m pct change)
 Jan          7.02               Jan              0.89
 Dec          6.96               Dec              0.92
 Nov          6.33               Nov              0.60
 Oct          5.67               Oct              0.06
 Sept         5.80               Sept             0.44
 Aug          6.44               Aug              0.76
 July         6.22               July             1.57
 June         5.05               June             0.97
 May          4.16               May              0.29
 April        3.91               April            0.15
 March        3.43               March            -0.14
 Feb          3.81               Feb              0.30
 Jan          3.72               Jan              0.84
 Dec          2.78               Dec              0.33
 Nov          2.41               Nov              -0.03
 Oct          2.57               Oct              0.19
 Sept         2.83               Sept             1.05
 Aug          2.75               Aug              0.56
 July         2.71               July             0.45
 June         3.65               June             0.11
 May          6.04               May              0.04
 April        7.31               April            -0.31
 March        7.92               March            0.22
 Feb          8.60               Feb              0.21
 

CONTEXT: 

- Analysts expected Indonesia's annual inflation in January
to ease after it reached a 20-month high in December, as food
prices declined slightly. 

- The government's plan to scrap import duties on rice,
wheat and soybeans may also reduce inflationary pressures in
coming months.  

- January's annual inflation was estimated to reach 6.81
percent, less than 6.96 percent in December. Core inflation --
which excludes administered prices and volatile foods -- was
seen stable at 4.25 percent year-on-year. 

- Food inflation has become a major concern for policymakers
worldwide, with Thailand's central bank seeing the need for
further rate normalisation and the Philippines' central bank
watching the surge in global commodity prices. 
  

- Bank Indonesia deputy governor Hartadi A. Sarwono said
last week it was open to a policy rate hike, though it would be
the last option, after telling Reuters in December that BI
wouldn't hesitate to tighten if core inflation neared 5 percent. 

- The central bank has been intervening in the foreign
exchange market to stem inflation, targeting 9,000 per dollar as
a benchmark to achieve its 4-6 percent inflation target this
year, he said.  

- Worries the central bank is behind the curve in tackling
inflation led foreign investors to sell Indonesian assets early
this year. 

- Analysts expected Bank Indonesia to keep its benchmark
rate at a record low 6.5 percent when meeting on Feb. 4, but saw
the central bank first hiking rates early in the second quarter
by 25 basis points. 

- The central bank is trying to hold its benchmark rate,
used as a reference by banks to adjust lending rates, to support
an economy seen growing by 6.4 percent in 2011 and to avoid
attracting greater "hot money" capital flows. Source: Reuters