And, indeed, based on data from Statistics Indonesia (BPS), the country’s December 2019 inflation rate was primarily driven by price increases in foodstuffs and airline tickets. But, overall, price pressures were modest.

Now the December 2019 data have come in, we can conclude that Indonesia’s full-year 2019 inflation was recorded at 2.72 percent year-on-year (y/y), a 20-year low! It is the fifth straight year of low inflation for Indonesia (by Indonesian standards), hence – as we have mentioned various times before – Southeast Asia’s largest economy entered a new era, namely the era of low inflation.


Read the full article in the December 2019 report

This article discusses:

Indonesian inflation at 20-year low in December 2019. What has caused this?
What caused limited inflation in December 2019?
 Growth in retail sales seems rather weak this year in the Christmas-New Year period
 Outlook for inflation in 2020