• Consumer Price Index: Indonesia's Inflation at 0.97% in January 2017

    We already expected Indonesia's inflation rate would be high in January 2017 due to higher food prices as well as higher administered prices (electricity tariffs, fuel prices and vehicle registration fees). However, inflation realization in the first month of 2017 exceeded our expectations. Indonesia's statistics bureau (BPS) announced around noon on Tuesday (01/02) that the nation's monthly inflation accelerated to 0.97 percent (m/m) in January 2017, while annual (headline) inflation rose to 3.49 percent (y/y).

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  • Manufacturing Activity Indonesia Improves, Concerns Persist

    Indonesia's manufacturing activity improved in the first month of 2017. The Nikkei Indonesia Manufacturing Purchasing Managers' Index (PMI) grew to a reading of 50.4 in January 2017, from a reading of 49.0 in the preceding month supported by a slight increase in order books (a reading above 50 signals expansion of the nation's manufacturing industry, while a reading below 50 indicates contraction). The latest data end a three-month contraction streak in Indonesia's manufacturing sector.

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  • What about Indonesia's Inflation Rate in January 2017?

    Indonesia's consumer price index is expected to rise in January 2017 amid higher food prices and higher government administered prices. Indonesian inflation in the first month of 2017 is estimated in the range of 0.60 - 0.70 percent month-on-month (m/m). Accelerating inflation in Southeast Asia's largest economy would imply that Indonesia's central bank (Bank Indonesia) has limited room to ease its monetary policy (by cutting the benchmark interest rate).

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  • Nielsen: 2017 Good Year for Indonesia's Consumer Product Sales

    Leading global information and measurement company Nielsen expects the market value of Indonesia's consumer products to rise 10 percent year-on-year (y/y) in 2017 supported by expansion of the nation's retail industry and improving macro economic conditions. Yongky Susilo, Executive Director at Nielsen Indonesia, sees accelerating economic growth (hence boosting people's purchasing power) and relatively low inflation (3.02 percent y/y in December 2016) as the right context for rising consumer spending in Southeast Asia's largest economy.

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