Basically all components showed inflation in February 2018. However, most pressures stemmed from processed food products and a rise in prices of rice and garlic. Suhariyanto, Head of BPS, added that bad weather contributed to inflation as it limited the supply and distribution of food products.

Overall, however, inflation remains under control and low (for Indonesian standards) and actually eased more than had been expected by analysts. Therefore, Indonesian inflation is expected to remain within the central bank's target range of 2.5 - 4.5 percent (y/y) in full-year 2018.

Meanwhile, Indonesia's annual core inflation - which excludes administered prices and volatile food prices - eased to 2.58 percent (y/y) in February, from 2.69 percent (y/y) one month earlier.

Inflation in Indonesia:

Month M/M Growth
      2018
January      0.62%
February      0.17%
Year-to-Date      0.79%


Headline Consumer Price Index of Indonesia:

Month M/M Growth
      2013
M/M Growth
      2014
M/M Growth
      2015
M/M Growth
      2016
M/M Growth
      2017
January      1.03%      1.07%     -0.24%      0.51%      0.97%
February      0.75%      0.26%     -0.36%     -0.09%      0.23%
March      0.63%      0.08%      0.17%      0.19%     -0.02%
April     -0.10%     -0.02%      0.36%     -0.45%      0.09%
May     -0.03%      0.16%      0.50%      0.24%      0.39%
June      1.03%      0.43%      0.54%      0.66%      0.69%
July      3.29%      0.93%      0.93%      0.69%      0.22%
August      1.12%      0.47%      0.39%     -0.02%     -0.07%
September     -0.35%      0.27%     -0.05%      0.22%      0.13%
October      0.09%      0.47%     -0.08%      0.14%      0.01%
November      0.12%      1.50%      0.21%      0.47%      0.20%
December      0.55%      2.46%      0.96%      0.42%      0.71%
Total      8.38%      8.36%      3.35%      3.02%      3.61%

Source: Statistics Indonesia (BPS)

Inflation in Indonesia and Central Bank (BI) Target:

  2014 2015 2016 2017 2018
Inflation
(annual % change)
 8.4  3.4  3.0  3.6
BI Target
(annual % change)
 4.5  4.0  4.0  4.0  3.5

 

  2008 2009 2010 2011 2012 2013
Inflation
(annual % change)
 9.8  4.8  5.1  5.4  4.3  8.4
BI Target
(annual % change)
 5.0  4.5  5.0  5.0  4.5  4.5

Source: Bank Indonesia

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