Indonesia: Inflation moderates in April
May 1, 2013
In April, consumer prices fell 0.10% over the previous month, which contrasted the 0.63% increase tallied in March. The reading was mainly influenced by lower prices for food as well as for clothing.
As a result of the monthly price decline, annual inflation decelerated from 5.9% in March to 5.6% in April, which was slightly below market expectations of 5.7%. That said, annual average inflation inched up from 4.7% in March to 4.8% in April.
Meanwhile, the core inflation index, which excludes volatile items such as food and administered prices, increased 0.14% over the previous month, whereas annual core inflation inched down to 4.1% in April.
The Central Bank has an inflation target of 4.5% plus/minus 1.0 percentage points for 2013 and 2014. FocusEconomics Consensus Forecast panellists anticipate inflation will remain within the tolerance margin and average 5.5% in 2013, which is up 0.2 percentage points from last month's forecast. For 2014, panellists see inflation at 5.1%.