Indonesia central bank says inflation to decline going forward

JAKARTA: Indonesia's inflation will tend to decline going forward, central bank governor Darmin Nasution said on Friday, after May inflation surprisingly fell to 4.45 percent due to lower food prices.

Nasution also said Bank Indonesia is able to manage the rupiah and expects the currency to average between 9,100 and 9,300 per US dollar this year.

The rupiah has strengthened after the central bank on Tuesday said it would introduce dollar term deposits in two weeks, aimed at adding dollar supply in the local market.