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Indonesia May inflation eases to 3.33% y-o-y, lowest in 6-1/2 years

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Indonesia's annual inflation rate eased in May to 3.33 per cent, the lowest since Dec 2009, the statistics bureau said on Wednesday.

[JAKARTA] Indonesia's annual inflation rate eased in May to 3.33 per cent, the lowest since Dec 2009, the statistics bureau said on Wednesday.

That compares with the median forecast of 3.29 per cent in a Reuters poll, and 3.60 per cent in April.

Core inflation rate, which strips out administered and volatile food prices, was 3.41 per cent in May, the same pace as in April. The poll had expected May core inflation of 3.43 per cent.

On a monthly basis, the consumer price index (CPI) rose 0.24 per cent.

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Until May, the headline inflation in Southeast Asia's largest economy has stayed inside the central bank's 3-5 per cent target range, giving room for Bank Indonesia (BI) to cut its key rate three times by a total of 75 basis points.

Its main policy rate is now at 6.75 per cent, while the seven-day reverse repurchase rate, which will be its new benchmark starting Aug. 19, is 5.50 per cent.

BI governor Agus Martowardojo has previously said the central bank may ease the monetary policy again at its next policy review on June 15-16.

REUTERS

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