Indonesia Inflation


Inflation accelerates to an almost two-year high in March

In March, consumer prices rose 0.63% over the previous month, which was below the 0.75% increase tallied in February. The reading was mainly influenced by higher prices for food.

As a result of the monthly price rise, annual inflation accelerated from 5.3% in February to 5.9% in March, the highest level since May 2011. Moreover, the figure came in above market expectations of inflation rising to 5.6%. In addition, annual average inflation edged up from 4.5% in February to 4.7% in March.

Meanwhile, the core inflation index, which excludes volatile items such as food and administered prices, increased 0.13% over the previous month, whereas annual core inflation inched down to 4.2% in March.

The Central Bank has an inflation target of 4.5% plus/minus 1.0 percentage points for 2013 and 2014. FocusEconomics Consensus Forecast panellists anticipate inflation will remain within the tolerance margin and average 5.2% in 2013, which is unchanged from last month's forecast. For 2014, panellists see inflation remaining at 5.2%.


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Indonesia Inflation Chart

Indonesia Inflation March 2013

Note: Annual and monthly variation of consumer price index in %.
Source: Statistics Indonesia (BPS) and FocusEconomics calculations.

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