Indonesia Aug inflation picks up, stays within target

JAKARTA, Sept 2 (Reuters) - Indonesia’s annual inflation rate accelerated in August to the highest since December 2017, but remained within the central bank’s target range and close to expectations, data from the statistics bureau showed on Monday.

The Consumer Price Index (CPI) rose 3.49% in August from a year earlier, compared with 3.32% in July. Analysts polled by Reuters had forecast a rise of 3.54%.

Bank Indonesia targets inflation in a range of 2.5%-4.5% this year.

The acceleration was due to drought driving up prices of food and rising gold prices, Suhariyanto, head of the statistics bureau, told a news conference.

On a monthly basis, the CPI rose 0.12% last month.

The annual core inflation rate, which strips out government-controlled and volatile food prices, accelerated to 3.30% in August from 3.18%. The poll had expected a 3.17% rate.

Reporting Nilufar Rizki and Maikel Jefriando Writing by Gayatri Suroyo; Editing by Muralikumar Anantharaman