Indonesia Inflation


Inflation accelerates in January as floods affect food supply

In January, consumer prices rose 1.03% over the previous month, which was well above the 0.54% increase tallied in December. The reading was mainly driven by higher prices for foodstuffs, which rose following severe flooding across Indonesia.

As a result of the monthly price rise, annual inflation rose from 4.3% in December to 4.6% in January, which was slightly above market expectations of 4.5%. In addition, annual average inflation inched up from 4.3% in December to 4.4% in January.

Meanwhile, the core inflation index, which excludes volatile items such as food and administered prices, increased 0.36% over the previous month, while annual core inflation inched down to 4.3% in January (December: +4.4%).

The Central Bank has an inflation target of 4.5% plus/minus 1.0 percentage points for 2013 and 2014.


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Indonesia Inflation Chart

Indonesia Inflation January 2013

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

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