Indonesia’s annual inflation rate slowed slightly in August as food prices fell on a monthly basis, the Central Statistics Agency said on Monday, Reuters reported. Headline consumer prices rose 3.82% in August from a year ago, against the expectation of 3.95% in a Reuters poll. July’s annual inflation rate was 3.88%. Indonesia’s central bank targets a headline inflation rate at 3-5% this year. In August, the consumer price index fell 0.07% on a monthly basis. Prices of food, such as fish and vegetables, fell from a month earlier. The annual core inflation rate, which excludes government-controlled and volatile food prices, was 2.98% in August, from 3.05% in July. The poll had forecast 3%. Bank Indonesia took advantage of contained inflation and a healthy current account deficit outlook to cut its benchmark interest rate by 25 basis points to 4.50% last month, the first cut since October 2016. The central bank’s next policy review will end on Sept. 22.
