Inflation returns to BI’s target range in May - Indonesian central bank likely to maintain a neutral policy stance

Pressure easing: A woman walks past clothes for sale at a shopping mall in Denpasar, Bali. Inflation has eased after BI hiked interest rates by a total of 225 basis points. —AFP

JAKARTA: Indonesia’s annual inflation rate eased to 4% in May, matching the upper end of the central bank’s target range earlier than expected, according to data from the statistics bureau.

Inflation in South-East Asia’s largest economy had been above Bank Indonesia’s (BI) 2% to 4% target range since June 2022 due to pressures from rising global food and energy prices.