Indonesia: Inflation declines to lowest level since May 2022 in April
Inflation came in at 4.3% in April, which was down from March’s 5.0%. April’s reading marked the lowest inflation rate since May 2022. Looking at the details of the release, prices for clothing and footwear rose at a faster pace in April, while prices for housing, water, electricity and household fuels increased at a more moderate pace. Meanwhile, transport prices rose at a weaker pace.
Annual average inflation edged up to 5.0% in April (March: 4.9%). Meanwhile, core inflation fell to 2.8% in April, from the previous month’s 2.9%.
Finally, consumer prices rose 0.33% from the previous month in April, after March’s 0.18% increase.
Commenting on the release, Nichlas Mapa, senior economist at ING, stated:
“Bank Indonesia paused earlier in the year after both core and headline inflation eased from their respective peaks and has kept the policy rate at 5.75% since. With price pressures moderating further, and with headline inflation inching closer to the central bank’s target, we believe BI will be considering a shift to a more accommodative stance in the coming months..”