Indonesia sees inflation rate falling from August

Indonesia's finance minister said month-on-month inflation in August would ease to 1.27% from the 3.29% rate in July following a big hike in fuel prices.

The month-on-month inflation pace would further ease in September and October, but firm in November and December due to seasonal factors, Finance Minister Chatib Basri said today.

"(Annual) inflation would be 9.2% (at end of the year). In August, we expect 1.27% (month-on-month) and (the rate) would return to normal in September," Basri told members of parliament.

Basri also said that the average exchange rate of the rupiah would be 10,200 (RM3.0016) to the US dollar at end of the year, from the previous estimate of 9,800 in the revised 2013 budget.

Earlier, Deputy Governor Bank Indonesia Perry Warjiyo said the central bank on Thursday plans to review its monetary instruments, including interest rates and the rupiah, to address the current economic situation. - Reuters, August 28, 2013.