Inflation in Indonesia accelerated significantly after the government increased prices of subsidized fuels in late June 2013. Particularly in July, it led to large inflationary pressures, although due to government compensation programs the inflation result was somewhat less severe (3.29 percent in July 2013) than previously forecast. Starting from September, however, inflation has been low and stable.

When several badly-handled food import quotas in combination with seasonal festivities (for example the holy month of Ramadan) contributed to high inflation in mid-2013, the central bank of Indonesia (Bank Indonesia) expected that the country's inflation rate would rise to nearly 10 percent by the end of the year. Fortunately, this turned out to be a too pessimistic view.

Consumer Price Index Indonesia:

2013    Inflation
January      1.03%
February      0.75%
March      0.63%
April     -0.10%
May     -0.03%
June      1.03%
July      3.29%
August      1.12%
September     -0.35%
October      0.09%
November      0.12%
Total      7.79%
    2008   2009   2010   2011   2012   2013
(annual percent change)
   9.8    4.8    5.1    5.4    4.3    7.9¹

¹ Year to date (January-November 2013)
Source: Statistics Indonesia