Indonesia's Sept annual inflation rate eases, hits 6-month low

[JAKARTA] Indonesia's annual inflation rate eased for a fourth month in September to its lowest since March on the back of a continued decline in food prices, the statistics bureau said on Monday.

Annual headline consumer prices rose 3.72 per cent in September, compared with a growth of 3.82 per cent in August. Analysts polled by Reuters had expected 3.67 per cent.

On a monthly basis, consumer prices rose 0.13 per cent in September. Inflation in the education sector contributed to the rise in the monthly inflation rate, but prices of food dropped.

The core inflation rate, which excludes administered and volatile food prices, stood at 3 per cent from 2.98 per cent in August. The poll had expected it to soften to 2.96 per cent.

Bank Indonesia has cut its benchmark interest rate twice since August to boost economic growth, which the governor said is "sufficient", signalling a pause in its main policy easing.

REUTERS