Indonesia’s annual inflation rate cooled in July, the statistics bureau said on Tuesday, as expected, as demand normalized after Idul Fitri holidays.
Consumer prices rose 3.88 percent in July from a year ago, close to the 3.87 percent expected in a Reuters poll. June’s annual inflation rate was 4.37 percent, the fastest pace since March 2016.
Indonesia’s central bank targets headline inflation rate at 3-5 percent this year. The consumer price index rose 0.22 percent on a monthly basis.
The annual core inflation rate, which excludes government-controlled and volatile food prices, slowed to 3.05 percent in July, from 3.13 percent in June. The poll had forecast 3.08 percent.
Bank Indonesia has held its benchmark interest rate steady at 4.75 percent since October 2016. The central bank will meet for its next policy review on Aug. 21-22.