Tuesday, 7 July 2009

Annual inflation sinks to 9-year low in June

The rate of annual inflation fell in June to its lowest level in nine years, according to official figures released on Wednesday. But analysts were divided over whether the drop would spur the central bank to further cut its key interest rate to help fuel economic growth. The Consumer Price Index, a key gauge of inflation that measures that average prices of goods and services and services purchased by households, rose 3.65% in June compared with the year-earlier period, a slower rate of increase than May’s annual rate of 6.04 percent, the Central Statistics Agency (BPS) said on Wednesday. The bureau said the drop in the year-on-year inflation rate resulted from especially high prices. Which spurred by a increase in fuel prices in May 2008.
Source: GlobeJakarta, 2 July, A3

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