Indonesia: Inflation eases again in August
September 1, 2014
Consumer prices increased 0.47% over the previous month in August, which was below 0.93% increase tallied in July. August’s increase was driven by higher prices in most categories of the index, with education registering the largest gain due to the start of the new school year. The price for housing and utilities tallied the second highest increase, including higher electricity tariffs.
Annual inflation eased from 4.5% in July to 4.0% in August. The reading was in line with market expectations and represented the lowest reading since January of last year. Annual average inflation decreased from 7.4% in July to 7.1% in August. Meanwhile, the core inflation index, which excludes volatile items such as food and administered prices, increased 0.46% over the previous month (July: +0.52% month-on-month). Annual core inflation inched down from 4.6% in July to 4.5% in August.
Author: Carl Kelly, Economist