Indonesia inflation rises to highest level since 2015

The inflation rate in Indonesia has climbed to its highest since October 2015, due to higher transportation costs after a fuel price hike, according to the data released by the Statistics Bureau on Monday.

The headline annual inflation rate went up to 5.95 per cent in September, up from 4.69 per cent in August, but came in slightly lower than the 6.00 per cent rate expected in a Reuters poll.

In September, the annual core inflation rate, which excludes government-controlled prices and volatile food prices, went up to 3.21 per cent, compared to 3.04 per cent in August and 3.60 per cent predicted by analysts.

In early September Indonesia raised subsidised fuel prices by 30 per cent as the government tried to rein in ballooning subsidy bills.

In September, Indonesia's central bank hiked policy interest rates by 50 basis points in an effort to control inflation, which is expected to peak at 6 per cent and core inflation at 4.6 per cent by the end of the year, compared to its target range of 2 per cent to 4 per cent.