Indonesian Inflation Eases To 3.08%, Lowest In 16 Months

(RTTNews) - Indonesia's inflation rate moderated further in July to reach the lowest level in more than a year, largely due to a continued slowdown in food prices, data from the statistics bureau showed on Tuesday.

The consumer price index climbed 3.08 percent year-on-year in July, slower than the 3.52 percent increase in June. Economists had expected inflation to ease to 3.10 percent.

The latest inflation was the lowest since March last year, when prices had risen 2.64 percent.

Moreover, the inflation rate has remained within the central bank's target range of 2-4 percent.

Core inflation also softened to 2.43 percent in July from 2.58 percent a month ago. Economists had forecast a growth rate of 2.50 percent.

Prices for food, beverages, and tobacco increased at a slower rate of 1.90 percent annually in July versus 2.85 percent a month ago.

Transportation charges were 9.58 percent higher compared to last year, and utility charges climbed by 2.0 percent. Both charges have grown at a weaker rate since June.

On a monthly basis, consumer prices moved up 0.21 percent in July, almost in line with the expected gain of 0.22 percent. The core consumer price index rose 0.13 percent.