Indonesia: Inflation accelerates to an almost two-year high in March
April 1, 2013
In March, consumer prices rose 0.63% over the previous month, which was below the 0.75% increase tallied in February. The reading was mainly influenced by higher prices for food.
As a result of the monthly price rise, annual inflation accelerated from 5.3% in February to 5.9% in March, the highest level since May 2011. Moreover, the figure came in above market expectations of inflation rising to 5.6%. In addition, annual average inflation edged up from 4.5% in February to 4.7% in March.
Meanwhile, the core inflation index, which excludes volatile items such as food and administered prices, increased 0.13% over the previous month, whereas annual core inflation inched down to 4.2% in March.
The Central Bank has an inflation target of 4.5% plus/minus 1.0 percentage points for 2013 and 2014. FocusEconomics Consensus Forecast panellists anticipate inflation will remain within the tolerance margin and average 5.2% in 2013, which is unchanged from last month's forecast. For 2014, panellists see inflation remaining at 5.2%.