The annual inflation rate in December was 3.13 percent, the bureau said, lower than November's 3.23 percent, but quicker than the median forecast of 2.98 percent in a Reuters poll.

The December rate was well within Bank Indonesia's target range of 2.5-4.5 percent for 2018.

On a monthly basis, the consumer price index rose 0.62 percent due to rising food prices and transportation fares.

The annual core inflation rate, which excludes government-controlled and volatile prices, was 3.07 percent, matching the poll's prediction and representing a slight acceleration from November's 3.03 percent.

BI raised interest rates six times last year to defend the rupiah, which hit its lowest in 20 years in October. However, the currency pared some losses closer to the end of the year due to capital inflows.

(Reporting by Nilufar Rizki and Maikel Jefriando; Writing by Gayatri Suroyo; Editing by Subhranshu Sahu)