JAKARTA: Indonesia’s annual inflation rate slowed to 2.28% in September, roughly in line with market forecast, due to a high base effect, official data showed on Monday, near the lower end of the central bank’s target range.

A Reuters poll of economists had expected a rate of 2.20% following August’s inflation rate of 3.27%.

The September core inflation rate also eased to 2.00% from 2.18% a month before, compared with the poll’s prediction of 2.08%.

The formidable challenge of rising inflation and price hike

Inflation in Southeast Asia’s largest economy peaked near 6% in September of 2022 after the government raised subsidised fuel prices.

To control price pressures, the central bank raised interest rates by a total of 225 basis points between August and January.

Bank Indonesia targets inflation within a range of 2% to 4% this year.

The target will be lowered to 1.5% to 3.5% in 2024.