Indonesia Inflation March 2019


Indonesia: Inflation dips further in March

April 1, 2019

Consumer prices increased 0.11% in March from the previous month, contrasting February’s 0.08% decline. March’s print was driven by higher prices for clothing and health.

Inflation dipped from 2.6% in February to 2.5% in March, marking a fresh multi-year low and falling to the bottom end of Bank Indonesia’s target range of 3.5% plus or minus 1.0 percentage point. Core inflation dipped marginally from 3.1% to 3.0%.

Looking ahead, inflation is set to remain subdued thanks to ongoing government measures to control prices, including through subsidies and efforts to improve the food supply. Moreover, the current account deficit is set to narrow from 2018, which should lessen pressure on the rupiah.

However, our panelists do see an uptick in inflation from the current low level later this year, with the Consensus projecting inflation of 3.5% in 2019 and 3.8% in 2020. That said, inflation should stay comfortably within the target range. As a result, Bank Indonesia is likely to continue conducting monetary policy largely in response to external developments.

Author:, Economist

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Indonesia Inflation Chart

Indonesia Inflation March 2019

Note: Annual and monthly variation of consumer price index in %.
Source: Statistics Indonesia (BPS) and FocusEconomics calculations.

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