Inflation Update Indonesia: Relatively High Inflation in October
The pace of inflation in Indonesia may reach 0.36 percent month-to-month (m/m) in October 2014, slightly higher than inflation in the preceding month (0.27 percent m/m). This forecast for October inflation is higher than this month’s historic average. Usually October tends to show low inflation or deflation as the harvest season commences and other inflationary pressures have also eased after the inflation peak in the June-August period (brought about by seasonal matters such as Islamic celebrations and the start of the new school year).
Inflation in October is expected to be relatively high due to the impact of higher electricity tariffs.
On Friday (16/10), an advisor of president-elect Joko Widodo said that Widodo may raise prices of subsidized gasoline and diesel by about 50 percent in November 2014. This move is expected to cause accelerated inflation in November, December and January 2015.
Inflation in Indonesia:
| Month | Monthly Growth 2013 |
Monthly Growth 2014 |
| January | 1.03% | 1.07% |
| February | 0.75% | 0.26% |
| March | 0.63% | 0.08% |
| April | -0.10% | -0.02% |
| May | -0.03% | 0.16% |
| June | 1.03% | 0.43% |
| July | 3.29% | 0.93% |
| August | 1.12% | 0.47% |
| September | -0.35% | 0.27% |
| October | 0.09% | |
| November | 0.12% | |
| December | 0.55% | |
| Total | 8.38% | 3.71% |
Source: Statistics Indonesia (BPS)