Indonesia Inflation December 2016

Indonesia

Indonesia: Inflation eases in December

January 3, 2017

Consumer prices rose 0.42% compared to the previous month in December, down from the 0.47% rise recorded in November. According to Statistics Indonesia, higher prices were recorded for food, health, beverages and tobacco, as well as for health services.

Inflation fell from 3.6% in November to 3.0% in December, beating market expectations by 0.1 percentage points. December’s result was the lowest inflation in six years. For 2016, inflation averaged 3.5%, a notch below 2015’s average of 3.6%. Meanwhile, core consumer prices, which exclude volatile items such as food and administered prices, rose 0.23% month-on-month in December (November: + 0.15% mom). Core inflation remained constant at 3.1% in December.

The Central Bank’s inflation target for 2017 is 3.0%–5.0%. FocusEconomics Consensus Forecast panelists expect inflation to average 4.2% in 2017, which is down 0.1 percentage points from last month’s forecast. For 2018, panelists see inflation averaging 4.5%.


Author: Angela Bouzanis, Senior Economist

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Indonesia Inflation December 2016

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


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