Indonesia’s inflation rate cools in May, comes in below forecast By Reuters

JAKARTA (Reuters) – Indonesia’s annual inflation rate eased more than expected in May, data from the statistics bureau showed on Monday, remaining within the central bank’s 1.5% to 3.5% target range.

The May headline inflation rate was 2.84%, down from 3% in April. A Reuters poll of analysts had expected an inflation rate of 2.94% in May.

Inflation has stayed within Bank Indonesia’s target range since the middle of last year. The central bank has delivered a cumulative 275 basis point rate hikes since mid-2022.

Monetary policymakers are still monitoring the rupiah’s recent weakness against the U.S. dollar as it could bring imported inflation into Southeast Asia’s largest economy.

BI’s last rate hike in April was in response to the rupiah falling to its lowest against the dollar since 2020.

The statistics bureau will release core inflation data later on Monday.