Indonesia: Inflation falls in December to lowest level in six years
January 4, 2016
Consumer prices increased 0.96% in December over the previous month, which was much stronger than the 0.21% rise tallied in November. December’s reading, the highest tallied all year, was mainly driven by higher prices for foodstuffs.
Inflation slumped from 4.9% in November to 3.4% in December, which marked the lowest reading in six years. The reading was below market expectations of 4.0%. Annual average inflation fell from 6.8% to 6.4%. Meanwhile, the core consumer prices, which excludes volatile items such as food and administered prices, increased 0.23% over the previous month (November: +0.16% month-on-month). Annual core inflation decreased from 4.8% to 4.0%, which marked the lowest figure in over two years.
Author: Carl Kelly, Economist