Economist at UOB Group Enrico Tanuwidjaja and Haris Handy assess the latest inflation figures in the Indonesian economy.
“March’s 2021 headline inflation stable at 1.37% y/y vis-à-vis February’s +1.38%, according to the data released by National Statistics Bureau. Overall, the increase in both administered and volatile price inflation offset the slowdown in core inflation. The government-administered prices rose by +0.88% y/y in March vs. February’s 0.66%. Volatile prices component increased by +2.49% y/y in March vs. February’s +1.52%. Meanwhile, core inflation cooled to 1.21% y/y in March vs. 1.53% in the previous month, as consumer spending remained weak.”
“Going forward, we expect the headline inflation to remain under control, gradually recover, and exceed the lower-end of the government's 2021 inflation target (2.0% - 4.0%) on the back of demand recovery (especially later in 2H21 given the optimism from the vaccine), accommodative monetary policy, and the continuation of fiscal stimulus disbursement. Nevertheless, downside risks remain due to uncertainty surrounding the pandemic going forward, which in turn, might dampen consumers’ confidence even further.”
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.