Due to the peak of the rainy season, heavy rainfall has triggered floods in several parts of Indonesia. At least 23 Indonesians died from drowning or electrocution in Jakarta and Manado (North Sulawesi) while tens of thousands of people needed to flee their houses. In Indonesia floods are a recurring problem at the start of the year as rivers burst their banks due to intense rainfall (however the issue is also partly blamed on logging and a failure to reforest in the hills around Jakarta). The high rainfall is expected to continue into February. Besides the social sorrow, flooding will also disturb the distribution of food products.

Last year, January recorded inflation of 1.03 percent. In that month more than 50,000 people were forced to relocate in Jakarta. So far in 2014, around 31,000 people have been displaced in the capital city.

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%
December      0.55%
Total      8.38%
    2008   2009   2010   2011   2012   2013
(annual percent change)
   9.8    4.8    5.1    5.4    4.3    8.4

Source: Statistics Indonesia

Further Reading:

Indonesia's High Rainfall Can Lead to Inflationary Pressures in January
Low Indonesian Inflation Rate Expected to Continue into January 2014
Analysis of Inflation in Indonesia