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Indonesia's Feb inflation rate eases to lowest in almost a decade

[JAKARTA] Indonesia's annual inflation rate cooled more than expected to the lowest in almost a decade, near the lower end of the central bank's target range, due to falling food prices, data from the statistics bureau showed on Friday.

February's inflation rate was at 2.57 per cent on a yearly basis, the lowest since November 2009 according to Refinitiv Eikon data, and compared with a 2.75 per cent analysts had expected in a Reuters poll. January's rate was 2.82 per cent.

The central bank targets inflation to stay within a range of 2.5 per cent to 4.5 per cent this year.

On a monthly basis, the consumer price index fell 0.08 per cent in February.

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The February annual core inflation rate, which excludes government-controlled and volatile prices, was virtually the same as January's 3.06 per cent, matching the poll's prediction.

BI raised interest rates six times last year by 175 basis points to support the rupiah amid bouts of capital outflows, which at the same time helped keep inflation within target.