Indonesian inflation accelerates

Indonesia's inflation accelerated in May to its highest level in five months due to increased food prices, data showed Monday, as people stocked up before the Islamic holy month of Ramadan.

The consumer price index rose 7.15 percent year-on-year, according to the official statistics agency, faster than expected and up from a 6.79 percent increase in April. It was the highest level since 8.36 percent in December.

Inflation in Southeast Asia's biggest economy has been edging up in recent months due mainly to higher fuel costs, after the government at the start of the year almost totally abolished huge subsidies and let petrol prices float with the market.

In May, however, the main driver was the higher cost of staples such as chicken and chilli as people stocked up ahead of the fasting month of Ramadan, which starts in mid-June.