Consumer Price Index Update: Indonesia’s 2019 Headline Inflation Is Lowest in Two Decades
Indonesian inflation was kept at a very mild rate of 0.34 percent month-on-month (m/m) in December 2019. This is remarkably low inflation considering the last month of the year usually triggers a significant increase in demand for consumer goods in the context of the Christmas and New Year celebrations. It is also a period when many Indonesians opt for a holiday.
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