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.
Inflation eases in September
October 1, 2012
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Indonesia Inflation Chart
Note: Annual and monthly variation of consumer price index in %.
Source: Statistics Indonesia (BPS) and FocusEconomics calculations.
Indonesia Economic News
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.
September 22, 2016
At its 21–22 September monetary policy meeting, Bank Indonesia decided to cut the BI seven-day Reverse Repo rate (BI seven-day RR rate) from 5.25% to 5.00%.