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Indonesia Inflation December 2019

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.

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