Indonesia: Inflation falls in December
Consumer prices increased 0.34% in December over the prior month, up from November’s 0.14% increase. December’s reading was driven by higher prices for food, transport, communication and financial services.
Inflation slipped to 2.7% in December from 3.0% in November, but remained within Bank Indonesia’s target range of 3.5% plus or minus 1.0 percentage point, while core inflation dipped to 3.0% from 3.1%. Under-control inflation should allow Bank Indonesia to maintain a dovish monetary stance and leaves the door open to further rate cuts in order to support growth.