Indonesia's inflation accelerates at faster pace in April which may lead the central bank to keep its benchmark interest rate unchanged at this month as the country's economic growth forecast slowing in the first quarter amid weakening rupiah.
The national statistic bureau announced on Monday that consumer price index rose by 6.79 percent in April on year compared with 6. 38 percent in March, as food and energy prices picked up.
On Month, inflation reached by 0.36 percent in April, rising from 0.17 percent in March, said Suryamin, head of the bureau.
"Unprocessed foods witnessed deflation of 0.79 percent in April (but) processed foods, drinks, cigarette ... and energy prices had suffered from inflation in April," he told a press conference at the bureau headquarters.
Core inflation excluding volatile and administrative prices was steady at 5.04 percent in April on yearly basis, he said.
The Indonesian central bank has kept its basic rate at 7.5 percent since it cut the rate by 25 basis points in February.
The bank, which is to have a meeting at the beginning of this month to decide whether to raise the interest rate, is struggling to maintain rupiah stability against the U.S. dollar.
Rupiah had passed psychological level of 13,000 in March, even weakened to 13,200 per U.S. dollar. On Monday, rupiah was at the position of 13,021 per U.S. dollar, according to the central bank.
The bank has conducted intervention on currency market to guard rupiah, in part reducing its foreign exchange reserve by about 4 billion U.S. dollars to 111.554 billion U.S. dollars in March.
Indonesian Finance Minister Bambang Brodjonegoro said on Thursday that he estimated the country's gross domestic products at below 5 percent at three months ended in March, falling from 5. 01 percent at the previous quarter, as weakening global economy sapped demand of Indonesia's export products.
But, President Joko Widodo expects the growth to accelerate faster at the second quarter as more budget spending has commenced in April and May.