Indonesia's June inflation seen steady at 3.38pc y/y

29 Jun, 2016

JAKARTA: Indonesia's annual inflation rate in June likely was very close to the previous month's level, a Reuters poll showed.

The median forecast from 12 economists polled was for a June rate of 3.38 percent, near May's rate of 3.33 percent.

Annual core inflation, which strips out administered and volatile food prices, was seen picking up to 3.50 percent in June from 3.41 percent a month earlier.

Consumer prices probably rose 0.54 percent on a monthly basis, according to six of the economists.

That is broadly in line with an estimate from Indonesia's central bank for June monthly inflation of 0.5-0.6 percent. Bank Indonesia (BI) did not give an outlook for June's annual rate.

BI targets annual inflation rate to stay within 3-5 percent this year. Late Tuesday, Deputy Governor Perry Warjiyo said annual inflation will likely be around 3.8-3.9 percent, adding that this means there's still room to loosen its policy again.

BI's current benchmark rate, cut four times this year by a total of 1 percentage point, is 6.50 percent. The central bank will adopt a new benchmark in August.

Copyright Reuters, 2016

Read Comments