Bank Indonesia sets sights on regional inflation


Bank Indonesia will tighten its control over regional price levels, it announced last week, in an attempt to rein in an annual inflation rate that remains almost 200 basis points above its target.

The central bank is chasing an inflation target of 4.5% – with an acceptable deviation of 100bp either side – but is facing an uphill struggle. Annual CPI inflation fell to 7.32% in March, but is declining slowly from a peak of 8.79% in August 2013.

Bank Indonesia attempts to control inflation through

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