Indonesia Oct consumer confidence cools on economy

JAKARTA, Nov 3 - Indonesian consumer confidence edged lower in October on concerns over economic conditions going forward and expectations of rising prices within the next six months, a central bank survey showed.

The government is expected to raise electricity tariffs in the first quarter of 2010, a move which some analysts said may prompt the central bank to raise its key rate <BIPG> as early as February, marking the start of its monetary tightening policy.

Bank Indonesia's survey of 4,600 households in 18 cities released on its website (www.bi.go.id) showed the consumer confidence index slipped to 110.0 in October, from a reading of 110.8 in September.

A reading above 100 means more consumers are optimistic than pessimistic.

"The moderate inflation rate and a significant appreciation of the rupiah against the dollar are seen maintaining confidence at the optimistic level," it said.

Indonesia's annual inflation eased more than expected in October to 2.57 percent from 2.83 percent in September. [ID:nJKB003241]

The rupiah (IDR=), Asia's best performing currency, has strengthened about 15 percent so far this year against the U.S. dollar, helping dampen some inflationary pressures.