Indonesia's inflation rate in August 2013 was 1.12 percent (month to month) according to Statistics Indonesia (BPS). This result is rather positive as many analysts projected a higher outcome for August inflation. Last month (July), inflation accelerated by 3.29 percent as the impact of higher subsidized fuel prices was felt in combination with weak government policies regarding food quotas, Muslim celebrations (Ramadan and Idul Fitri) as well as the beginning of the news school year.
Annual inflation rose to 8.79 percent, which constitutes the highest rate in the last four and a half years. Major contributors to August inflation were higher food prices, the higher gold price and inflationary pressures due to the weakening rupiah (imported inflation). According to Indonesia's central bank, inflation will be about 9.0 to 9.8 percent at the year-end.
Indonesia's trade deficit set a new record high at USD $5.65 billion in the first seven months of 2013. BPS chairman Suryamin said that the deficit was particularly caused by the country's oil & gas deficit (USD $7.6 billion), while the non-oil & gas sector posted a surplus of USD $1.9 billion). Indonesia's central bank expects the current account deficit to ease to 3.4 percent of the country's GDP in the third quarter of 2013. In the second quarter the deficit stood at USD $9.8 billion, equivalent to 4.4 percent of GDP.
(annual percent change)
¹ year to date
Source: Statistics Indonesia