Indonesia: Inflation recedes further in February amid low global oil prices
March 2, 2015
Consumer prices decreased 0.36% in February over the previous month, which followed the 0.24% drop tallied in January. February’s reading, the lowest since June 2007, was driven by a steep decline in prices for foodstuffs as well as transportation and communication services. Low global oil prices continue to offset the increase in prices caused by the government’s decision in November of last year to lower fuel subsidies.
Annual inflation receded from 7.0% in January to 6.3% in February. The reading was below market expectations of 6.7%. Annual average inflation inched down from 6.3% in January to 6.2% in February. Meanwhile, the core inflation index, which excludes volatile items such as food and administered prices, increased 0.34% over the previous month (January: +0.61% month-on-month). Annual core inflation held steady at January’s 5.0%.
Author: Carl Kelly, Economist