In September 2013, inflation is expected to ease to a traditionally average September inflation rate (between 0.00 to 0.20 percent).

According to data from Statistics Indonesia, higher food prices (including raw food and prepared food products) contributed about 43 percent to total inflation in 2012. Regarding geographic location, Java (and Jakarta in particular) account for the largest portion of food product inflation.

Despite the currently high headline inflation of 8.61 percent (year-on-year), Indonesia's benchmark interest rate (BI rate) is expected to be kept at 6.50 percent at tomorrow's (15/08) Bank Indonesia Board meeting. In the previous two months, the BI rate has been raised twice in order to mitigate higher inflation and to support the weakening rupiah.

2013    Inflation
January      1.03%
February      0.75%
March      0.63%
April     -0.10%
May     -0.03%
June      1.03%
July      3.29%
Total      6.64%
    2008   2009   2010   2011   2012   2013
(annual percent change)
   9.8    4.8    5.1    5.4    4.3    6.6¹

¹ year to date
Source: Statistics Indonesia