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Indonesia Inflation

Indonesia Inflation

Inflation in Indonesia

Indonesia experienced moderate inflation between 2013 and 2022. The country's central bank, Bank Indonesia, effectively used monetary policy tools to manage inflation pressures arising from commodity price fluctuations and global economic conditions, including the COVID-19 pandemic.

Consumer price inflation in Indonesia averaged 4.1% in the ten years to 2022, above the Asia-Pacific regional average of 2.1%. The inflation rate for 2022 was 4.2%. For more inflation information, visit our dedicated page.

Indonesia Inflation Chart

Note: This chart displays Inflation Rate (CPI, annual variation in %) for Indonesia from 2014 to 2023.
Source: Statistics Indonesia.

Indonesia Inflation Data

2018 2019 2020 2021 2022
Inflation (CPI, ann. var. %, aop) 3.2 2.8 2.0 1.6 4.2
Inflation (CPI, ann. var. %, eop) 3.1 2.6 1.7 1.9 5.5
Inflation (Core, ann. var. %, aop) 2.8 3.2 2.3 1.4 2.7
Inflation (WPI, ann. var. %, aop) 5.5 1.1 2.4 2.6 4.7

Inflation falls to lowest level since September 2023 in January

Inflation came in at 2.6% in January, which was down from December’s 2.8%. January's figure marked the lowest inflation rate since September 2023. The moderation was primarily due to softer growth in prices for food, transport, and clothing and footwear. Moreover, prices for recreation and entertainment grew at a more subdued pace. Annual average inflation fell to 3.5% in January (December: 3.7%). Meanwhile, core inflation was stable, coming in at December's 1.7% in January. Lastly, consumer prices increased 0.04% in January over the previous month, a smaller increase than December's 0.42% increase. January's result marked the weakest reading since August 2023.

UOB analyst Enrico Tanuwidjaja commented on the release: “On balance, still sluggish demand, especially on purchases of durable and large ticket items, despite externally-driven upside risks to inflation in Indonesia are still keeping a lid on prices and thus it is not materially significant for us to revise our headline inflation forecast. We expect inflation to average lower to the tune of 3% this year, down from 3.6% last year. Starting in 2024, BI has a lower inflation target range of 1.5-3.5%, rendering our forecast at slightly above BI target range’s midpoint. We also reiterate our BI rate forecast to remain steady at 6% throughout this year and only likely to enter into a rate-cutting cycle in early 2025.”

Consensus Forecasts and Projections for the next ten years

How should you choose a forecaster if some are too optimistic while others are too pessimistic? FocusEconomics collects Indonesian inflation projections for the next ten years from a panel of 37 analysts at the leading national, regional and global forecast institutions. These projections are then validated by our in-house team of economists and data analysts and averaged to provide one Consensus Forecast you can rely on for each indicator. By averaging all forecasts, upside and downside forecasting errors tend to cancel each other out, leading to the most reliable inflation forecast available for Indonesian inflation.

Download one of our sample reports to visualize what a Consensus Forecast is and see our Indonesian inflation projections.

Want to get access to the full dataset of Indonesian inflation forecasts? Send an email to

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