INDONESIA cut its key interest rate by a half a percentage point to 11.75 per cent yesterday, the third reduction this year, after annual inflation fell to a 10-month low.

New figures from the Central Statistics Office today show that the annual rate of inflation rose to 4.5% in August from 4.2% in July. The rate is now at its highest level since March 2003 and was higher than expected.

The UK office of National Statistics said today that CPI annual inflation - the UK Government's target measure - rose to 2.5% in August up from 2.4% in July.

The expensive growth in employers' health insurance premiums continues to slow, but it is still twice the inflation rate, the Kaiser Family Foundation reported Tuesday in its annual survey.

THE annual rate of inflation has continued to increase with the May 2005 rate having been recorded at 19.1 per cent, up from 18.3 per cent in April.

The annual inflation rate was 3.9% in June, unchanged from the May figure, according to the Central Statistics Office. The May figure had been the highest for more than three years.

The annual rate of inflation has continued to increase with the May 2005 rate having been recorded at 19.1 per cent, up from 18.3 per cent in April.