Indonesia's annual inflation accelerated more than expected in January as power tariffs and food prices increased notably after floods hit various parts of the country.
Consumer prices rose 4.57 percent year-on-year in January, faster than the 4.3 percent increase seen in December, the Central Bureau of Statistics reported Friday. Economists had forecast prices to rise 4.47 percent.
Compared with December, consumer prices were up 1.03 percent. Meanwhile, core inflation eased to 4.32 percent from 4.4 percent a month ago.
The central bank is expected to leave its key rate at record low 5.75 percent in February as inflation still remains within the target of 3.5 percent to 5.5 percent.
In a separate communique, the statistical office said exports dropped 9.8 percent in December, and imports slipped 5.6 percent, taking the trade deficit to around $155 million.
For the whole year of 2012, the trade deficit reached $1.63 billion. Due to weak demand from abroad, exports dropped 6.61 percent. Meanwhile, investment lifted nation's imports, which was up 8.02 percent.
Elsewhere, a survey from Markit revealed that Indonesia's manufacturing sector shrank slightly in January. The Purchasing Managers' Index fell to 49.7 from 50.7 in December. The latest reading indicated the first deterioration in the health of the manufacturing sector recorded since May 2012.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.