Indonesia: Inflation accelerates in January as floods affect food supply
February 1, 2013
In January, consumer prices rose 1.03% over the previous month, which was well above the 0.54% increase tallied in December. The reading was mainly driven by higher prices for foodstuffs, which rose following severe flooding across Indonesia.
As a result of the monthly price rise, annual inflation rose from 4.3% in December to 4.6% in January, which was slightly above market expectations of 4.5%. In addition, annual average inflation inched up from 4.3% in December to 4.4% in January.
Meanwhile, the core inflation index, which excludes volatile items such as food and administered prices, increased 0.36% over the previous month, while annual core inflation inched down to 4.3% in January (December: +4.4%).
The Central Bank has an inflation target of 4.5% plus/minus 1.0 percentage points for 2013 and 2014.