Indonesia: Inflation ticks up to the highest level in more than two years
July 1, 2013
In June, consumer prices rose 1.03% over the previous month, which contrasted the 0.03% decline tallied in May. The reading was mainly driven by higher prices for transport, communications and financial services as well as for food.
Building on the monthly reading, annual inflation rose from 5.5% in May to 5.9% in June, the highest level since May 2011. In addition, annual average inflation edged up from 4.8% in May to 5.0% in June.
Meanwhile, the core inflation index, which excludes volatile items such as food and administered prices, increased 0.33% over the previous month, while annual core inflation remained unchanged at 4.0% in June.
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 6.0% in 2013, which is up 0.3 percentage points from last month's forecast. For 2014, panellists see inflation at 5.3%.