Inflation Update Indonesia: November Inflation Rises to 6.23% Y/Y

Indonesia’s core inflation, which excludes volatile food and fuel prices, rose to 4.21 percent y/y from 4.02 percent y/y in October. On a month-to-month basis (m/m), Indonesian inflation was recorded at 1.5 percent in November, meaning that year-to-date inflation is currently 5.75 percent.

Higher prices for food products and transportation contributed significantly to November’s inflation pace. Higher electricity tariffs also accounted for some inflationary pressures.

Earlier, Indonesia’s central bank (Bank Indonesia) stated that the country’s inflation rate may touch 8 percent (y/y) by the year-end. Meanwhile, Indonesian Finance Minister Bambang Brodjonegoro said that he expects inflation to rise to 7.3 percent y/y by the end of 2014.

Inflation in Indonesia:

Month  Monthly Growth
 Monthly Growth
January          1.03%          1.07%
February          0.75%          0.26%
March          0.63%          0.08%
April         -0.10%         -0.02%
May         -0.03%          0.16%
June          1.03%          0.43%
July          3.29%          0.93%
August          1.12%          0.47%
September         -0.35%          0.27%
October          0.09%          0.47%
November          0.12%          1.50%
December          0.55%  
Total          8.38%          5.75%

Source: Statistics Indonesia (BPS)

Further Reading:

Indonesia’s Inflation Statistics November 2014
Analysis of Indonesian Inflation
Macroeconomic Stability Indonesia: Inflation and GDP Update