2023.06.0508:21:00UTC+00Indonesia Inflation Eases Further To 4%, Lowest In 1 Year

Indonesia's inflation rate slowed more than expected in May to reach the lowest level in a year, largely due to lower energy and food prices, data from the statistics bureau showed on Monday.

The consumer price index climbed 4.0 percent year-on-year in May, slower than the 4.33 percent increase in April. Economists had expected inflation to slow to 4.22 percent.

The latest inflation was the lowest since May last year, when prices had risen 3.55 percent.

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

Core inflation slowed to 2.66 percent in May from 2.83 percent a month ago. Economists had forecast a growth rate of 2.80 percent.

Transportation charges were 10.62 percent higher compared to last year, but slower than the 11.96 percent surge in April. Similarly, the annual price growth in food and non-alcoholic beverages moderated to 4.27 percent from 4.58 percent.

On a monthly basis, consumer prices rose 0.09 percent in May, versus an expected increase of 0.30 percent. The core consumer price index edged up 0.06 percent.