1-9-2023 (JAKARTA) Indonesia’s annual inflation for August showed a slight increase but remained below market expectations, according to data from the country’s statistics bureau.
The Consumer Price Index (CPI) rose by 3.27 percent in August. While this is higher than July’s 3.08 percent, it fell short of analysts’ expectations of 3.33 percent, as per a Reuters poll. It’s important to note that Indonesia’s central bank, Bank Indonesia, has set an inflation target range for 2023 of 2 percent to 4 percent.
Core inflation, which excludes government-controlled prices and volatile food prices, showed a different trend. It eased in August to 2.18 percent from 2.43 percent in the previous month. This was below the poll’s expectation of a 2.30 percent rate for August.
The main drivers behind the acceleration of headline inflation were increasing prices of rice, fuel, and cigarettes.
On a monthly basis, consumer prices in Indonesia declined by 0.02 percent in August.
