Indonesia: Inflation stabilizes in December
January 2, 2013
In December, consumer prices rose 0.54% over the previous month, which was above the 0.07% increase tallied in November. The reading was driven by higher prices for foodstuffs as well as for housing.
Despite the monthly price rise, annual inflation stabilized at November's 4.3%, which came in slightly above market expectations of 4.2%. Annual average inflation closed 2012 at 4.3%, below the 5.4% observed in 2011.
Meanwhile, the core inflation index, which excludes volatile items such as food and administered prices, increased 0.28% over the previous month, while annual core inflation remained unchanged at 4.4% in December.
The Central Bank has an inflation target of 4.5% plus/minus 1.0 percentage points for 2013 and 2014.