Indonesia Inflation


Inflation eases in September

In September, consumer prices were virtually flat over the previous month, which was well below the 0.95% increase tallied in August. The reading mainly reflected how a decline in food prices was offset by higher prices for housing as well as for clothing. As a result of the weak monthly print, annual inflation moderated from 4.6% in August to 4.3% in September, which was below market expectations of 4.6%. Moreover, annual average inflation remained stable at 4.2% in September. Meanwhile, the core inflation index, which excludes volatile items such as food and administered prices, increased 0.34% over the previous month, driving annual core inflation down to 4.1%. The Central Bank has an inflation target of 4.5% plus/minus 1.0 percentage points for 2012 and 2013.


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Indonesia Inflation Chart

Indonesia Inflation September 2012

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

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