Indonesia August inflation eases to 1.32% y/y, new 20-year low

INFLATION - JAKARTA. Indonesia's inflation rate cooled further in August to 1.32% from a year earlier, statistics bureau data showed on Tuesday, the lowest reading in two decades and below the central bank's target range, as the coronavirus pandemic hurt demand.

The August annual inflation rate was the slowest since May 2000, according to Refinitiv Eikon data, and compared with 1.40% expected in a Reuters poll. The rate in July was 1.54%.

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The inflation rate has stayed below the central bank's target range of 2%-4% for three months due to reduced economic activity.

The annual core inflation rate was 2.03% in August, a touch below the 2.07% in July and roughly in line with the poll's 2.00% forecast.