Indonesia Says 2011 Core Inflation May Not Exceed 5%

Indonesia’s core inflation may not exceed 5 percent this year even as costlier commodities threaten to push consumer-price gains above 6 percent, the central bank said, signaling it will keep interest rates at a record low.

Bank Indonesia will work closely with the government to contain domestic prices and inflation expectations, Perry Warjiyo, director of economic research at the central bank, told reporters in Jakarta.