Indonesia: Inflation jumps back up in September
October 1, 2014
Consumer prices increased 0.27% over the previous month in September, which was below 0.47% increase tallied in August. September’s modest increase was mainly driven by higher prices for housing and utilities as well as for education due to the new school year. In contrast, prices for transport and communication, foodstuffs, and clothing decreased over the previous month.
Annual inflation increased from 4.0% in August to 4.5% in September. The reading was roughly in line with market expectations and represented the highest reading in three months. Annual average inflation decreased from 7.1% in August to 6.8% in September. Meanwhile, the core inflation index, which excludes volatile items such as food and administered prices, increased 0.29% over the previous month (August: +0.46% month-on-month). Annual core inflation dropped from 4.5% in August to 3.6% in September.
Author: Carl Kelly, Economist