Indonesia's inflation eased in July, which may indicate that price increases will slow for the rest of the year and give Bank Indonesia leeway to not raise interest rates.
The official Central Statistics Agency said Tuesday the year-on-year inflation in July ebbed to 3.88% in July from 4.37% in June. Sequentially, inflation slowed to 0.22% from 0.69%.
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The median forecast from a Wall Street Journal poll of 10 economists was for July's inflation to come in at 3.84% compared with a year ago and 0.22% from the month before.
The main drivers on inflation were education costs, which rose 0.62% month-on-month, and processed food prices, which rose 0.57% from June.
Core inflation, which excludes volatile food prices and costs determined by the government, continued to slow to 3.05% from 3.31%, which may indicate weak consumer purchasing power.
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(END) Dow Jones Newswires
August 01, 2017 00:46 ET (04:46 GMT)