Indonesia: Inflation holds steady in December
January 2, 2014
Consumer prices rose 0.55% over the previous month in December, following the 0.12% increase tallied in November. December's increase was primarily driven by higher prices for foodstuffs as well as prepared foods, beverages and tobacco.
Annual inflation held steady at November's 8.4% in December. Annual average inflation rose from 6.6% in November to 7.0% in December. Meanwhile, the core inflation index, which excludes volatile items such as food and administered prices, increased 0.45% over the previous month (November: 0.20% month-on-month). Annual core inflation inched up from 4.8% in November to 5.0% in December.
The Central Bank's inflation target is 3.5%-5.5% for 2014 and 3.0%-5.0% for 2015. FocusEconomics Consensus Forecast panelists expect that inflation will average 6.3% in 2014, which is unchanged from last month's forecast. For 2015, panelists see inflation falling to 5.5%.
Author: Carl Kelly, Economist