Indonesia inflation may slow Feb to May due to harvest-govt

JAKARTA Tue Feb 8, 2011 2:26am EST

JAKARTA Feb 8 (Reuters) - Indonesia's inflation is estimated to slow from February to May as the local rice harvest will start at the end of this month, Bambang PS Brodjonegoro, the finance ministry's head of fiscal policy, said on Tuesday.

Annual inflation reached 7 percent in January, prompting the central bank to raise its benchmark interest rate by 25 basis points to 6.75 percent last week.

"Prices are expected to decline," said Brodjonegoro. (Reporting by Adriana Nina Kusuma; Editing by Neil Chatterjee)