Consumer Price Index Indonesia: 0.62% of Inflation in January 2018
Annual headline inflation in Indonesia eased to 3.25 percent year-on-year (y/y) in January 2018, from 3.61 percent (y/y) in the preceding month. The decline in Indonesian inflation was slightly steeper than had been estimated by analysts. The latest consumer price index data were released by Statistics Indonesia (BPS) just before noon on Thursday (01/02).
Suhariyanto, Head of BPS, explained that Indonesia's January inflation was particularly caused by rising rice prices (contributing 0.24 percent to last month's inflation rate). Therefore, volatile food inflation was recorded at 2.58 percent (y/y) in January 2018.
Not only prices of rice, but also several other food items recorded inflation, including chicken meat (0.07 percent m/m), fresh fish (0.05 percent m/m), cayenne pepper (0.04 percent m/m), and vegetables (0.01 percent m/m). However, not all food items contributes to inflation. For example, prices of chicken eggs and red onions both deflated by 0.01 percent (m/m).
In addition to foodstuffs, inflation also occurred in the group of processed food products, cigarettes, and tobacco (tobacco inflation is due to the increase in the cigarette excise tax, effective per 1 January 2018).
Still, Indonesian inflation in January 2018 was lower compared to January 2017 when a 0.97 percent (m/m) inflation pace was determined. Last year, inflation had risen more steeply due to administered price adjustments (to wit: electricity tariffs, fuel prices and vehicle registration fees). This year, on the contrary, administered prices deflated 0.15 percent (m/m) in January.
Inflation in Indonesia:
| Month | M/M Growth 2018 |
| January | 0.62% |
| Year-to-Date | 0.62% |
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