Indonesia March Inflation Eases on Lower Food Prices

Indonesia's inflation rate eased in March on moderating basic food prices, the official Central Statistics Agency said Friday. The agency said that annual inflation slowed to 6.65% in March from 6.84% in February. Meanwhile, on a monthly basis, the index fell 0.32% compared with an increase of 0.13% a month earlier.
The median forecast of 12 regional economists polled by Dow Jones Newswires is for the CPI to rise 6.94% on year in March. The median forecast of eight economists who gave on-month comparisons is for the index to fall 0.07%.
“This is the highest monthly deflation in four years,“ the agency's chairman, Rusman Heriawan, told reporters.
The easing in inflation may prompt the central bank to keep its benchmark overnight interest rate unchanged at 6.75% again when it meets April 12.
On-year core inflation, which excludes volatile food prices and prices controlled by the government, accelerated to 4.45% in March from 4.36% in February, suggesting higher inflation expectations in the coming months.