Indonesia: Inflation continues to ease in May
June 3, 2013
In May, consumer prices fell 0.03% over the previous month, which followed the 0.10% decrease tallied in April. The reading was mainly influenced by lower prices for food, which offset higher prices for housing, water, electricity, gas and fuel.
Building on the subdued reading, annual inflation inched down from 5.6% in April to 5.5% in May, which was marginally below market expectations of 5.6%. Annual average inflation remained unchanged at 4.8% in May.
Meanwhile, the core inflation index, which excludes volatile items such as food and administered prices, edged up 0.06% over the previous month, while annual core inflation inched up to 4.0% in May.
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 5.7% in 2013, which is up 0.2 percentage points from last month's forecast. For 2014, panellists see inflation at 5.3%.