Indonesia: Inflation rose to multi-month highs in September- UOB
|Economist at UOB Group Enrico Tanuwidjaja and Yari Mayaseti assess the latest inflation figures in Indonesia.
Key Takeaways
“Indonesia’s annual inflation rate stood at 1.60% y/y in September vis-à-vis 1.59% a month earlier, but slightly below market expectations at 1.69% (Reuters). This was the highest inflation rate since May, amidst loosening restrictions in some regions in the country. On a month-on-month basis, Indonesia posted 0.04% deflation in September, following 0.03% inflation in August.”
“Annual core inflation rate slowed slightly to a 5-month low of 1.30% y/y in September (vs. August’s 1.31%) and volatile prices component slowed to 3.51% y/y (vs. August’s 3.80%). Meanwhile, the government-administered prices component rose in September to 0.99% y/y vs. 0.65% in the previous month.”
“Going forward, we expect the headline inflation to gradually recover, and exceed the lower end of the government's 2021 inflation target (2.0% - 4.0%), as the daily COVID-19 cases come under control and the economic activity picks up with the gradual easing of social restriction.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.