Indonesia's inflation hits 5-year high, above central bank target

Indonesia's inflation rate rose at the fastest pace in five years in June, topping forecasts and breaching the central bank's target range amid rising food prices, official data showed on Friday.

The June annual inflation rate accelerated to 4.35 percent, the highest since June 2017 and above the 4.17 percent forecast in a Reuters poll, compared with 3.55 percent in May. Bank Indonesia's target range is two percent to four percent.

However, the annual core inflation rate, which strips out government-controlled and volatile prices, came in below market expectations at 2.63 percent in June. The poll had forecast a 2.72 percent rate and May's 2.58 percent.

- Reuters