Indonesia's inflation rate picks up to 3.45 pct in June

JAKARTA, July 1 (Reuters) - Indonesia's annual inflation rate accelerated slightly more than expected in June as price pressures intensified close to the end of the Muslim fasting month.

The statistics bureau said the June annual rate was 3.45 percent, compared with May's 3.33 percent and the median forecast in a Reuters poll of 3.38 percent.

Core inflation rate, which strips out administered and volatile food prices, was an annualised 3.49 percent in June, near the 3.50 percent analysts had expected.

On a monthly basis, the consumer price index (CPI) rose 0.66 percent.

Despite the acceleration, June's rate is still inside Bank Indonesia (BI) target range of 3-5 percent. Before Friday's data, the central bank said the rate may be below 4 percent at the end of the year, creating room for the central bank to ease monetary policy again.

BI's current benchmark rate, cut four times this year by a total of 1 percentage point, is 6.50 percent. It will adopt a new benchmark in August.

Below are details of inflation in June: y/y previous m/m previous CPI +3.45 +3.33 +0.66 +0.24 Core +3.49 +3.41 Reuters forecasts CPI y/y +3.38 CPI m/m +0.54 Core y/y +3.50 Bank Indonesia 2015 3-5 target (Reporting by Nilufar Rizki and Gayatri Suroyo; Editing by Richard Borsuk and Sam Holmes)

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