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Indonesia Inflation January 2018

Indonesia: Inflation moderates in January

In January, consumer prices increased 0.62% compared to the previous month, which was below December’s 0.71% month-on-month rise. The deceleration was largely driven by lower prices for transportation, communication and financial services.

Inflation edged down from December’s 3.6% to 3.3% in January. The moderation was largely due to a base effect stemming from hikes in electricity tariffs last year. The result remained within the Central Bank’s target range for 2018 of 3.5% plus or minus 1.0 percentage point.

Meanwhile, core consumer prices, which exclude volatile items such as food and administered prices, rose 0.31% month-on-month in January, slightly above December’s 0.13% increase. Core inflation edged down from 3.0% in December to 2.7%.

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