Indonesia's July Inflation Rate Eases to Lowest Since February 2022

INFLATION - JAKARTA. Indonesia's annual inflation rate eased more than expected to 2.13% in July, the lowest since February 2022 and in the bottom half of the central bank's 1.5% to 3.5% target range, data from the statistics bureau showed on Thursday.

A Reuters poll of economists had expected July headline inflation of 2.40%, down from a 2.51% rate in June.

The core inflation rate, which strips out government controlled prices and volatile food prices, edged up to 1.95% in July, from 1.90% the previous month. The poll had forecast 1.90%.

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Inflation has remained within the central bank's target range since the middle of last year, but Bank Indonesia has held back from easing monetary policy as it focused on keeping the rupiah IDR= steady amid global financial market uncertainties.

The consumer price index in July fell 0.18% on a monthly basis, with prices of shallot, chilli, and chicken contributing the most to the decline. An increase of 0.10% was predicted by economists in the poll.