Indonesia: Inflation accelerates to a 20-month high in February
March 1, 2013
In February, consumer prices rose 0.75% over the previous month, which was below the 1.03% increase tallied in January. The reading was mainly driven by higher prices for food as well as housing, water, electricity, gas and fuel.
As a result of the monthly price rise, annual inflation accelerated from 4.6% in January to 5.3% in February, the highest level since June 2011. Moreover, the figure came in above market expectations of 4.8%. In addition, annual average inflation inched up from 4.4% in January to 4.5% in February.
Meanwhile, the core inflation index, which excludes volatile items such as food and administered prices, increased 0.30% over the previous month, while annual core inflation remained stable at 4.3% in February.
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 5.2% in 2013, which is unchanged from last month's forecast. For 2014, panellists see inflation remaining at 5.2%.