Indonesia's annual inflation rises 3.83 pct in Feb on increase in electricity tariffs

Indonesia's annual inflation rate increased in February, data from the statistics bureau showed on Wednesday. Indonesia's February annual headline inflation climbed 3.83 percent compared with January's 3.49 percent, slightly less than the 3.90 percent predicted in a Reuters poll.

On a monthly basis, the consumer price index was up 0.23 percent in February. Core inflation which excludes administered and volatile food prices also picked up in February, to 3.41 percent from 3.35 percent the previous month.

The rise in February inflation was largely driven by increases in electricity tariffs. The rise in annual inflation was mainly due to higher prices for processed and raw foods as well as healthcare.

Looking ahead, Indonesia's inflation is likely to rise further as government proceeds to gradually remove electricity tariff subsidies for around 18.7 million recipients. ANZ estimates a further 0.8 percentage point addition to headline inflation from this move.