Indonesia Inflation

Indonesia

Indonesia: Inflation holds steady again in May

June 2, 2014

Consumer prices increased 0.16% over the previous month in May, which contrasted the 0.02% decrease tallied in April. May’s modest increase was driven by higher prices in most categories of the index, including prepared food, beverages and tobacco as well as health services. Prices for foodstuffs decreased again on impacts from the harvesting season.

Annual inflation came in at 7.3% for the third consecutive month in May. The reading was in line with market expectations and still represented the lowest reading since June 2013. Annual average inflation rose slightly from 7.4% in April to 7.6% in May. Meanwhile, the core inflation index, which excludes volatile items such as food and administered prices, increased 0.23% over the previous month (April: +0.24% month-on-month). Annual core inflation inched up from 4.7% in April to 4.8% in May.

The Central Bank’s inflation target for 2014 is 3.5%–5.5% and 3.0%–5.0% for 2015. FocusEconomics Consensus Forecast panelists expect that inflation will average 6.1% in 2014, which is unchanged from last month’s forecast. For 2015, panelists see inflation easing to 5.5%.


Author:, Economist

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Indonesia Inflation Chart


Indonesia Inflation May 2014

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


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