Indonesia: Inflation falls to over-six-year low in August
September 1, 2016
In August, consumer prices decreased 0.02% over the previous month, which contrasted the 0.69% rise recorded in July. According to Statistics Indonesia, August’s reading came mainly on the back of lower prices for foodstuffs as well as transport, communications and financial services.
Inflation fell from 3.2% in July to 2.8% in August, which marked the lowest reading since December 2009. The reading came in below the 3.0% that market analysts had expected. Meanwhile, annual average inflation fell from 4.6% in July to 4.2% in August. Core consumer prices, which exclude volatile items such as food and administered prices, increased 0.36% over the previous month (July: +0.34% month-on-month). Core inflation eased from July’s 3.5% to 3.3% in August.