The consumer price index (CPI) rose 0.07 percent in October driven by higher food and healthcare prices, higher than 0.02 percent recorded in the same month last year, Statistics Indonesia (BPS) announced on Monday. Meanwhile, the annual inflation rate quickened to 1.44 percent in October, far below Bank Indonesia’s target range of 2 to 4 percent.

The October inflation was driven by the rising prices of red chili, shallots, cooking oil, healthcare products, as well as rice and dishes in restaurants, among other products, BPS said.

The inflation last month was caused by higher food prices rather than improved demand as the country entered the rainy season, which curbed food production, Bank Mandiri economist Faisal Rachman wrote in a research note on Monday.

“The domestic demand remained weak as the pandemic hit hard on almost all aspects of the economy,” he stressed.

BPS data show that the core inflation, which excludes volatile food and government-controlled prices, dropped to 1.74 percent year-on-year (yoy) in October from 1.86 percent yoy recorded in September, signaling sluggish demand for goods. Administered prices were up 0.46 percent yoy, while volatile prices recorded annual inflation of 1.32 percent.

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