September 27, 2019 / 9:24 AM / 2 months ago

Indonesia's September inflation rate seen stable at 3.52%: Reuters poll

FILE PHOTO: A man walks near a display of papayas at Foodmart Fresh supermarket in Jakarta, Indonesia, October 31, 2016. REUTERS/Beawiharta

JAKARTA (Reuters) - Indonesia’s annual inflation rate is expected to stay little changed in September from August, at the midpoint of Bank Indonesia’s (BI) target range, a Reuters poll showed on Friday.

Twelve economists in the poll had forecast the Consumer Price Index (CPI), scheduled for release on Tuesday, to pick up a touch to 3.52% from 3.49%.

BI’s inflation target is a range of 2.5% to 4.5% this year.

The annual core inflation rate, which excludes government-controlled and volatile food prices, is predicted at 3.29% in September, according to a median of nine analysts, barely changed from August’s 3.30%.

Indonesia’s inflation has stayed within target in the last few years, providing room for the central bank to cut its benchmark interest rate three times this year as the rupiah currency becomes relatively more stable. [nL3N26919U]

“Inflation is set to stay comfortably within the central bank’s 2.5-4.5% target band and will not prevent BI from easing monetary policy (further),” Jennifer Kusuma of ANZ said in a note on Friday.

Kusuma expects BI to cut policy rate further by 25 bps in the fourth quarter, bringing the benchmark down to 5.00%.

Polling by Nilufar Rizki and Tabita Diela; editing by John Stonestreet

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