Indonesia's Annual Inflation Is Forecast To Slow In June

Forex News

Indonesia's annual inflation rate is awaited to slowdown in June from a month earlier. According to the median forecast of 12 economists polled by Reuters, the annual consumer price index was forecast to rise 2.88%, compared with a 3.23% inflation rate in May. The Bank Indonesia (BI) targets a headline inflation rate of 2.5% to 4.5% in 2018.

Meanwhile, the annual core inflation rate, which excludes government-controlled and volatile food prices, is forecast at 2.78% in June, compared to 2.75% in May.

Indonesia’s central bank raised its benchmark interest rate twice in May, and is expected to hike once more today, to support the rupiah and contain capital outflows. The Indonesian rupiah dropped through 14.400 per dollar today amid escalating global trade tensions.