JAKARTA- Indonesia’s annual inflation rate was 1.03 percent in March, the statistics bureau said on Tuesday, missing market expectations and also staying below the central bank’s target range for the third consecutive month.
A Reuters poll of analysts had expected an annual inflation rate of 1.17 percent in March. Bank Indonesia targets inflation within a range of 1.5 percent to 3.5 percent.
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Inflation has been very low at the start of 2025, with Indonesia recording its first annual deflation reading in more than two decades in February, as the government offered hefty discounts on some electricity prices.
Even though electricity prices returned to normal in March, there was an ongoing impact for some customers that influenced the March reading, the statistics bureau said.
Authorities have said the low inflation figures were not an indication of weak purchasing power but a reflection of the government’s policy, citing higher core inflation readings.
