Indonesia Inflation


Inflation recedes slightly in September

Consumer prices fell 0.35% over the previous month in September, contrasting the 1.12% increase tallied in August. The decrease reflects that lower prices for foodstuffs and transport more than offset higher prices for clothing.

Annual inflation fell from 8.8% in August to 8.4% in September (August's reading was the highest since January 2009). However, annual average inflation rose from 5.6% in August to 6.0% in September.

Meanwhile, the core inflation index, which excludes volatile items such as food and administered prices, increased 0.57% over the previous month, while annual core inflation rose slightly to 4.7% in September (August: 4.5%).

The Central Bank has an inflation target of 4.5% with a tolerance margin of plus/minus 1.0 percentage points for 2013 and 2014. FocusEconomics Consensus Forecast panelists expect that inflation will come in well above the tolerance margin and average 7.2% in 2013, which is up 0.3 percentage points from last month's forecast. For 2014, panelists see inflation falling to 6.3%, which is up 0.5 percentage points from last month's projection.

Author:, Economist

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Indonesia Inflation Chart

Indonesia Inflation August 2013

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

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