Indonesia: Inflation picks up in August, hits midpoint of Central Bank's target range
September 2, 2019
Consumer prices increased 0.12% over the prior month in August, down from July’s 0.31% uptick. August’s rise was driven by higher prices for clothing, and education, recreation and sport, but was dampened somewhat by lower food and transport prices.
Inflation ticked up from 3.3% in July to 3.5% in August, reaching the midpoint of Bank Indonesia’s target range of 3.5% plus or minus 1.0 percentage point, while core inflation increased from 3.2% to 3.3%. Contained inflation—in part due to low oil prices and ebbing domestic momentum—should support Bank Indonesia’s more accommodative stance, and potentially allow for further rate cuts going forward.
Author: Oliver Reynolds, Economist