Indonesia inflation slips to new 20-year low in August

Slight improvement: Farmers drying freshly harvested tobacco leaves in Temanggung, Central Java. August annual inflation rate eased to 1.32%, the slowest since May 2000, from 1.54% the previous month. — AFP

JAKARTA: Indonesia’s inflation cooled further in August and hit a new 20-year low, marking a third month the rate came in below the central bank’s target range, as the Covid-19 pandemic hurt demand in South-East Asia’s largest economy.

Some economists say the weak inflation reading reflected the scale of the downturn caused by the pandemic, but they noted the central bank may not be eager to cut rates further.