In March, consumer prices rose 0.07% over the previous month, which was slightly above the 0.05% increase tallied in February. Prices for prepared food, beverages and tobacco as well as housing rose over the previous month, more than offsetting a decline in food prices, the largest component of the consumer price index. Annual inflation rose for the first time since August 2011, increasing from 3.6% in February to 4.0% in March, which was in line with market expectations. Annual average inflation, however, edged down from 4.8% in February to 4.6% in March. The higher inflation reading came in amid changes to the government's initial proposal to reduce fuel subsidies in April. On 31 March, the Indonesian parliament rejected the government's plan for an immediate 33% increase in the price of subsidized fuel. Instead, lawmakers agreed to back the government's plan only if the average price of the Indonesian crude over a six-month period will rise 15% above the USD 105 per barrel assumed by the government in its 2012 budget. The Central Bank has an inflation target of 4.5%
Inflation accelerates for the first time in seven months
April 2, 2012
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Note: Annual and monthly variation of consumer price index in %.
Source: Statistics Indonesia (BPS) and FocusEconomics calculations.
Indonesia Economic News
October 20, 2016
At its 19–20 October monetary policy meeting, Bank Indonesia decided to cut the BI seven-day Reverse Repo rate (BI seven-day RR rate) from 5.00% to 4.75%.
October 17, 2016
Indonesia’s trade surplus rose in September to a 14-month high as imports deteriorated.
October 12, 2016
Retail sales in August expanded 14.4% over the same month last year, according to Bank Indonesia’s Retail Sales Survey (RSS).
October 3, 2016
In September, consumer prices increased 0.22% from the previous month, which contrasted the 0.02% fall recorded in August.
October 3, 2016
The manufacturing Purchasing Managers’ Index (PMI) rose from 50.4 in August to 50.9 in September, according to a release provided by Nikkei and IHS Markit.