Indonesia’s annual inflation rate in May rose to its highest this year, a development likely to strengthen the central bank’s reluctance to cut interest rates, Reuters reported. Annual headline inflation last month was 7.15%, the statistics bureau said on Monday, mainly due to rising food, tobacco and electricity prices ahead of the Muslim fasting month of Ramadan. The May pace was the highest since December’s spike to 8.36% after fuel prices were raised the preceding month. A Reuters poll had forecast May inflation at 7.0%. The pace in April was 6.79%. Compared to Indonesia, Singapore, Thailand, Malaysia and Philippines are seeing rates of between -1% and 2.2%
