Indonesia: Inflation inches down in October
November 1, 2013
Consumer prices rose 0.09% over the previous month in October, contrasting the 0.35% decrease tallied in September. The increase reflects that higher prices for prepared foods and transport more than offset lower prices for foodstuffs and clothing.
Annual inflation inched down from 8.4% in September to 8.3% in October. However, annual average inflation rose from 6.0% in September to 6.3% in October.
Meanwhile, the core inflation index, which excludes volatile items such as food and administered prices, increased 0.34% over the previous month (September: 0.57% month-on-month). Annual core inflation remained at September's 4.7%.
The Central Bank has an inflation target of 4.5% with a tolerance margin of plus/minus 1.0 percentage points for 2013 and 2014. FocusEconomics Consensus Forecast panelists expect that inflation will come in well above the tolerance margin and average 7.3% in 2013, which is up 0.1 percentage points from last month's forecast. For 2014, panelists see inflation falling to 6.5%, which is up 0.2 percentage points from last month's projection.
Author: Carl Kelly, Economist