Indonesia: Inflation eases for third straight month in November
December 1, 2011
In November, consumer prices increased 0.34% over the previous month, which contrasted the 0.12% decrease recorded in October. Food prices, which have the biggest weight in the consumer price index, increased 0.59% and had the biggest impact on the reading. In addition, clothing prices added 1.36% over the previous month. Annual inflation decelerated for a third consecutive month from 4.4% in October to 4.2% in November, which was in line with market expectations. Annual average inflation also moderated from 5.8% in October to 5.6% in November. Inflation has been moderating since January, with the exception of a seasonal spike in August, thereby giving Bank Indonesia leeway for adopting a more accommodating monetary policy. The Central Bank has an inflation target of 5.0% 1% for this year and 4.5% 1% for 2012.