Indonesia: Inflation hits highest level since June in November
Consumer prices rose a seasonally-adjusted 0.28% over the previous month in November, accelerating from October’s 0.07% increase. November’s result marked the sharpest increase in prices since February, and was driven largely by higher prices for food, beverages and tobacco.
Inflation rose to 1.6% in November, from October’s 1.4%. November’s result marked the highest inflation rate since June, but was still substantially below Bank Indonesia’s 2.0%–4.0% target range. Meanwhile, the trend pointed down slightly, with annual average inflation coming in at 2.1% in November (October: 2.2%). Core inflation was stable, coming in at October’s 1.7% in November.
Below-target inflation in recent months will likely encourage Bank Indonesia to maintain an accommodative monetary stance ahead. Our panelists see inflation rising back to target next year as the economy recovers.