Bank Indonesia: Inflation Showing a Continued Easing Trend in October 2013
The central bank of Indonesia (Bank Indonesia) sees a continued easing trend in inflationary pressures in October 2013. Indonesia's inflation in October 2013 was recorded at 0.09 percent (month-to-month), thus confirming the indication that monthly inflation is back to its normal pattern in the last five years. However, the annual inflation pace is still high at 8.32 percent (yoy). Limited inflation in October was influenced by deflation of the food group component (0.80 percent mtm), although commodity prices rose (especially red chili).
The inflation rate of the administered price group also decreased after the increase in prices of subsidized fuels in June 2013 (0.25 percent mtm in October 2013). Meanwhile, core inflation was recorded at 0.34 percent (mtm), lower than the previous month.
Indonesia's Trade Balance September 2013
In line with Bank Indonesia’s estimate, the trade balance in September 2013 recorded a deficit of USD $0.7 billion. The deficit occurs due to the decreasing surplus of non-oil and gas trade balance to USD $0.5 billion and the increasing deficit of oil and gas trade balance to USD $1.2 billion. The decreasing surplus of non-oil and gas trade balance was affected by non-oil and gas imports, which grew faster (26.3 percent mtm) compared to non-oil and gas export growth (18.6 percent mtm). The deficit of Indonesia’s trade balance as of quarter III of 2013 is recorded at USD $2.9 billion, a decrease from USD $3.1 billion in the previous quarter. Bank Indonesia estimates that the decreasing deficit of Indonesia's trade balance will positively contribute to a decreasing deficit of the current account in quarter III 2013.
Difi A. Johansyah
(annual percent change)
¹ Year to date (January-October 2013)
Source: Statistics Indonesia