Indonesia's July inflation rate slows to 3.08% y/y

INDONESIA’S annual inflation rate cooled further to 3.08 per cent in July, moving closer to the middle of the central bank’s target range and roughly in line with expectations, data from the statistics bureau showed on Tuesday (Aug 1).

A Reuters poll had expected a July rate of 3.1 per cent. Bank Indonesia is targeting 2023 inflation within a range of 2 per cent to 4 per cent.

The core inflation rate, which strips out government-controlled and volatile food prices, eased slightly more than expected to 2.43 per cent in July from 2.58 per cent a month before. The poll had predicted core inflation.

Inflation in South-east Asia’s largest economy has gradually eased since peaking last September at 6 per cent. The central bank hiked interest rates by a total of 225 basis points between August and January to control prices pressures. REUTERS