CPI 1.71 yy vs 1.68 in poll
Core CPI 2.21 yy vs 2.09 in poll
JAKARTA, Nov 1 Reuters Indonesia39;s October headline and core inflation rates came in slightly above expectations, official data showed on Friday, but they remain relatively low and reinforce analysts39; views that the central bank has room for further monetary easing.
Bank Indonesia BI cut interest rates in September and its governor has said it might further ease monetary policy given inflation is expected to stay low until 2025, but the timing of the next rate cut may depend on global market conditions. Its next policy meeting is on Nov. 1920.
The October headline inflation rate was 1.71, Statistics Indonesia said, easing from 1.84 in September and a touch above the 1.68 predicted by analysts polled by Reuters.
The headline rate has been steadily slowing since March, with last month39;s rate the lowest in three years.
Core inflation, which strips out governmentcontrolled prices and volatile food prices, was 2.21, the highest since July 2023, amid rising gold prices. Analysts had predicted a rate of 2.09, the same pace as in September.
The headline rate was near the lower end of BI39;s target range of 1.5 and 3.5. The central bank does not have a target for core inflation, but its officials often say its interest rate policy is also aimed at managing core inflation, which better reflects demand pressures.
Some economists see headline inflation reversing its slowing trend soon, pressured by higher…