Indonesia’s Inflation Returns to Target Earlier Than Expected

Indonesia’s inflation returned within the central bank’s 2%-4% goal in May, well ahead of forecasts.

Consumer prices increased 4% last month from a year ago, settling right on the upper end of Bank Indonesia’s target band and marking its smallest rise in a year. The central bank had earlier expected inflation to fall within the range in the third quarter, before Governor Perry Warjiyo said in a separate event on Monday that the gauge should end the year at 3.3%.