By Stefanno Sulaiman and Fransiska Nangoy JAKARTA (Reuters) -Indonesian prices rose at their slowest rate in almost three years in September as the pace of food-price inflation eased, giving the central bank ample room to loosen monetary policy to stimulate economic growth.

Simply sign up to the German economy myFT Digest -- delivered directly to your inbox. Inflation in Germany has fallen below the European Central Bank’s crucial 2 per cent target for the first time in more than three and a half years,

Christine Lagarde said the European Central Bank is becoming more optimistic that inflation will return to target in a "timely manner." Speaking to lawmakers at the European Parliament in Brussels, the ECB president added that the central bank will take this into account at the October policy meeting but is not "pre-committing to a particular rate path.

The European Central Bank is increasingly confident that inflation will fall back to its 2% target and this should be reflected in its October policy decision, ECB President Christine Lagarde said on Monday.

The European Central Bank is more confident that inflation is going to settle at its target after a series of recent data releases, and will take that into account when it next sets policy, President Christine Lagarde said Monday.