Inflation in Indonesia seen higher in the near-term – UOB
|UOB Group’s Economist Enrico Tanuwidjaja reviewed the recently published inflation figures in the Indonesian economy.
Key Quotes
“Indonesia’s annual Inflation rate slowed for a third straight month in November to 3.00% y/y (vs. October’s 3.13%), as prices for transport, clothing, and housing-electricity increased at a slower pace, which more than offset the higher food and process food prices”.
“We expect higher inflation to continue amidst year-end festivities going into the first quarter of 2020. Nevertheless, the 2019 year-to-date inflation is currently averaging at 3.1% and we continue to see the full year inflation average to register lower than the mid point of 2.5% – 4.5% central bank’s official target range. For 2020, we are forecasting the inflation average a higher 3.6%, on the back of fuel subsidy removal and potential recovery in demand. Those factors may drive inflation higher while still keeping it within the range of central bank’s 2020 official target range (2.0% to 4.0%)”.
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.