ECONOMY | Staff Reporter, Indonesia

Indonesia's headline inflation rate falls to 3.9% in July

It’s been heading downwards for the past five months.

Indonesia's headline inflation rate fell from 4.8% in June to 3.9% in July.

According to UOB, the rate has been heading downwards for the past five months.

Bank Indonesia has contributed to taming food price inflation after growth of food prices slowed down since the start of the year to 1.50% in July from an average of 7.24% in 2016.

Here's more from UOB:
This is central in anchoring the inflation in the country. While inflation has likely peaked, we do not expect the inflation rate to shift significantly lower from here to justify another easing cycle.

We expect the year-end inflation to be around 4.0% y/y in both 2017 and 2018. That will limit the scope for rate cut in Indonesia especially as investors continue to expect tighter monetary policies in the US and the EU.

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