Indonesia: Inflation eases again in September
October 1, 2015
Consumer prices decreased 0.05% in September over the previous month, which contrasted the 0.39% rise tallied in August. September’s reading was mainly driven by lower prices for foodstuffs and transportation as the Ramadan holiday period came to an end. In contrast, prices in all other categories, including prepared food, beverages and tobacco, as well as housing and utilities tallied modest increases.
Inflation eased from 7.2% in August to 6.8% in September. The reading undershot market expectations of a decline to 7.0%. Annual average inflation increased from 6.6% to 6.8%. Meanwhile, the core inflation index, which excludes volatile items such as food and administered prices, increased 0.44% over the previous month (August: +0.52% month-on-month). Annual core inflation increased from August’s 4.9% to 5.1%.
Author: Carl Kelly, Economist