Indonesia's annual inflation eased to 6.04% in May from 7.31% in April, Statistics Indonesia said Monday. Meanwhile, economists had forecast a rate of 6.2%. On a monthly basis, consumer prices were up 0.04% in May following a decrease of 0.31% in April.
Separately, the agency reported that the country's exports dropped 22.55% year-on-year in April. Compared to March, exports dropped 1.81%. Meanwhile, imports fell 2.58% month-on-month.
Given the fall in inflation and exports, most economists predict the Bank Indonesia to cut its key rate by at least 25 basis points to 7% when it reviews its monetary policy on Wednesday. The central bank has made a cumulative reduction of 225 basis points in the key interest rate since December 2008.
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June 19, 2026 16:46 ET Major central banks continued to dominate the economic news flow this week too, led by the Federal Reserve, as they announced their latest policy decisions. The Federal Reserve policy session was in focus as it was the first to be led by the new chief Kevin Warsh. In Europe, central banks of the U.K. and Switzerland announced their rate decisions. In Asia, the Bank of Japan drew attention for its policy moves, while data out of China threw some light on the state of the economy.