Indonesian inflation seen accelerating in Sept on higher food prices

"Thus, we expect to see a higher year-on-year inflation rate in September 2007, at 7.02 percent year-on-year, compared to the August inflation rate of 6.51 percent," Gunawan said.

Apart from the Ramadan effect, road tolls were increased by around 20 percent in late August, a technical problem at a ferry terminal disrupted shipments of food from Java to Sumatra, and cooking oil and kerosene for household use were scarce.

"Despite Pertamina's effort to increase the supply of kerosene to households and the constant price of subsidized electricity, higher prices for kerosene will push the index for the housing component of the CPI up slightly in September," Gunawan said.