Indonesia Inflation

Indonesia

Indonesia: Inflation holds at 7-month high in July

August 3, 2015

Consumer prices increased 0.93% in July over the previous month, which was above the 0.54% rise tallied in June. July’s reading was driven by higher prices in all categories. Foodstuffs registered the largest price increase in June, compared to the previous month, followed by transport, communication and financial services. Price pressures for food and transport typically increase during this time of the year amid Ramadan and Lebaran festivities.

Annual inflation in July held at June’s 7.3%. The reading slightly overshot market expectations of a 7.1% result. Annual average inflation increased from 6.1% to 6.3%. Meanwhile, the core inflation index, which excludes volatile items such as food and administered prices, increased 0.34% over the previous month (June: +0.26% month-on-month). Annual core inflation decreased from 5.0% in June to 4.9% in July.

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 Chart


Indonesia Inflation July 2015

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


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