JAKARTA: Indonesia said Wednesday that inflation rose slightly to 4.56 percent in July due to higher food prices at the start of the Muslim fasting month of Ramadan.
The consumer price index (CPI) rose to 4.56 per cent last month, up from 4.53 per cent in June, the Central Statistics Agency said.
“We started the fasting month in late July. Higher demand increased food prices,” said agency chief Suryamin, who goes by one name.
He said that the prices of chicken, eggs, rice and sugar had risen due to demand, and that soybean prices had increased because of the global impact caused by a drought in the United States.
“The price of tofu and tempeh increased due to the rising soybean price,” he said, referring to the cheap but protein-rich Indonesian staples that are made with soybeans.
The July on-month inflation also edged up to 0.7 per cent from 0.62 per cent in June.
Core inflation, which excludes volatile food prices, was 4.28 per cent in July, from 4.15 per cent the previous month.
Bank Indonesia, the country’s central bank, has left its benchmark interest rate unchanged at a record low of 5.75 per cent since February.
Channel News Asia