Indonesia September Inflation Rate Cools to Lowest in Over 2 Years
Jakarta. Indonesia's annual inflation rate cooled more than expected in September to the lowest in over two years, data from the Central Statistics Agency, or BPS, showed on Monday (01/10).
Consumer prices rose 2.88 percent from a year earlier in September, slower than the 3.05 percent expected in a Reuters poll and August's rate of 3.20 percent.
The September reading was the lowest since August 2016.
The data supported Bank Indonesia's argument that the rupiah's 9 percent decline this year has not pressured consumer prices up. The central bank targets inflation in a range of between 2.5 percent and 4.5 percent this year.
The BPS's subindex breakdown showed prices of some food and transportation falling on a monthly basis in September, bringing the overall consumer price index down 0.18 from August.
The annual core inflation rate, which excludes government-controlled and volatile goods, also eased slightly to 2.82 percent from 2.90 percent a month before, and also below 2.85 expected in the poll.
Bank Indonesia has raised interest rates five times this year by a total of 150 basis points, though it repeatedly said the hikes were intended to support the rupiah and were not rooted in inflation concerns.
Reuters
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