Indonesia Inflation

Indonesia

Indonesia: Inflation eases in August

September 1, 2015

Consumer prices increased 0.39% in August over the previous month, which was below the 0.93% rise tallied in July. August’s reading was mainly driven by higher prices for foodstuffs as well as prepared food, beverages and tobacco. In contrast, prices for transportation declined in August compared to the previous month as the annual Ramadan holiday period came to an end.

Inflation eased from 7.3% in July to 7.2% in August. The reading undershot market expectations of a 7.3% result. Annual average inflation increased from 6.3% to 6.6%. Meanwhile, the core inflation index, which excludes volatile items such as food and administered prices, increased 0.52% over the previous month (July: +0.34% month-on-month). Annual core inflation held at July’s 4.9% in August.

The Central Bank’s inflation target for 2015 is 3.0%–5.0%. FocusEconomics Consensus Forecast panelists expect that inflation will average 6.5% in 2015, which is down 0.3 percentage points from last month’s forecast. For 2016, panelists see inflation averaging 4.8%.


Author:, Economist

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Indonesia Inflation August 2015

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


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