Indonesia’s July inflation rate slows to 3.08% year-on-year

Vendors arrange their fruits at a traditional market in Jakarta, Indonesia, Jan 2, 2023. REUTERS/Ajeng Dinar Ulfiana/File photo

JAKARTA  – Indonesia’s annual inflation rate cooled further to 3.08 percent 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.

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

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

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

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