Consumer Price Index Indonesia: Inflation 0.51% m/m in January 2016
Indonesia's inflation rate rose 0.51 percent on a monthly basis in January 2016 according to the latest data from Statistics Indonesia (BPS). Suryamin, Head of BPS, said food products accounted for most of the inflationary pressures in the first month of the year. Inflation tends to have a peak in the months December and January due to Christmas and New Year celebrations when consumer demand for various products, including food items, increases (the other peak comes in the June-August period due to Islamic celebrations).
Prices of food products rose 6.60 percent (y/y) in Indonesia - Southeast Asia's largest economy - in January, while utility costs were up 3.06 percent (y/y).
On an annual basis the Indonesian consumer price index rose 4.14 percent, still within the central bank's target range. Meanwhile, the nation's core inflation, which excludes volatile and administered prices, eased to 3.62 percent (y/y) in the first month of 2016.
In the second half of 2015 Indonesia's inflation finally started to ease after having been high - over 8 percent - over the preceding two years due to several subsidized fuel price reforms.
Read Column: Analysis of Inflation in Indonesia
Inflation in Indonesia:
| Month | Monthly Growth 2013 |
Monthly Growth 2014 |
Monthly Growth 2015 |
Monthly Growth 2016 |
| January | 1.03% | 1.07% | -0.24% | 0.51% |
| February | 0.75% | 0.26% | -0.36% | |
| March | 0.63% | 0.08% | 0.17% | |
| April | -0.10% | -0.02% | 0.36% | |
| May | -0.03% | 0.16% | 0.50% | |
| June | 1.03% | 0.43% | 0.54% | |
| July | 3.29% | 0.93% | 0.93% | |
| August | 1.12% | 0.47% | 0.39% | |
| September | -0.35% | 0.27% | -0.05% | |
| October | 0.09% | 0.47% | -0.08% | |
| November | 0.12% | 1.50% | 0.21% | |
| December | 0.55% | 2.46% | 0.96% | |
| Total | 8.38% | 8.36% | 3.35% |
Source: Statistics Indonesia (BPS)
Inflation in Indonesia and Central Bank Target 2008-2015:
| 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | |
| Inflation (annual percent change) |
9.8 | 4.8 | 5.1 | 5.4 | 4.3 | 8.4 | 8.4 | 3.4 |
| Bank Indonesia Target (annual percent change) |
5.0 | 4.5 | 5.0 | 5.0 | 4.5 | 4.5 | 4.5 | 4.0 |
Sources: Statistics Indonesia and Bank Indonesia