(Adds economists' comments)
By Stefanno Sulaiman and Gayatri Suroyo
JAKARTA, March 1 (Reuters) - Indonesia's annual
inflation picked up slightly in February, but its core inflation
decelerated more than expected, data from its statistics bureau
showed on Wednesday.
The Consumer Price Index rose 5.47% on a yearly basis in
February, roughly in line with the median forecast in a Reuters
survey of analysts of 5.44% and above January's 5.28%.
Core inflation unexpectedly slowed to 3.09%, compared with
analysts' prediction that it would stay around January's level
of 3.27%.
Rising prices of fuel, rice, cigarettes and air fares
contributed to the acceleration of headline inflation.
Indonesia's central bank has raised interest rates by 225
basis points since August to guide inflation back to within its
target range of 2% to 4%.
At its February policy meeting, Bank Indonesia (BI) said
the current benchmark rate level of 5.75% was sufficient to get
headline inflation to return to within the target band in
September and for core inflation to stay within target
throughout the year.
Bank Permata's economist Josua Pardede said the data
showed core inflation was "well anchored". Combined with
stability in the rupiah exchange rate, this should mean BI could
keep interest rates unchanged, he said, though he warned of a
potential seasonal rise in prices ahead of the Muslim fasting
period that starts later this month.
Faisal Rachman, Bank Mandiri's economist, agreed the
data were unlikely to change BI's policy stance.
"What needs to be anticipated that may change (the
stance) is the FOMC meeting later in March 2023," he said,
referring to the U.S. Federal Open Market Committee meeting set
for March 21-22.
BI, which reviews Indonesia's monetary policy every
month, will hold its next meeting on March 15-16.
(Reporting by Stefanno Sulaiman, Gayatri Suroyo and Fransiska
Nangoy; Editing by Kanupriya Kapoor)
