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Indonesia Inflation September 2020

Indonesia: Inflation rises in September, but remains muted

Consumer prices dropped a seasonally-adjusted 0.05% in September over the previous month, matching August’s reading and driven chiefly by lower food prices.

Inflation increased to 1.4% in September, above August’s 1.3% but still substantially below Bank Indonesia’s 2.0%–4.0% target range, amid tepid demand. Annual average inflation ticked down to 2.3% in September (August: 2.5%). Core inflation registered 1.9%.

Inflation is seen returning to the lower part of the target range in Q4 and rising further in 2021 as demand and energy prices recover.

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