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Consumer Price Index Indonesia: Inflation at 0.17% in February 2018

The Statistics Agency (BPS) announced that Indonesia’s headline inflation reached 0.17 percent month-on-month (m/m) in February 2018. This is a lower inflation rate compared to February 2017 (+0.23 percent m/m), hence the country’s annual headline inflation eased to 3.18 percent (y/y) in February 2018, from 3.25 percent (y/y) in the preceding month.

Basically all components showed inflation in February 2018. However, most pressures stemmed from processed food products and a rise in prices of rice and garlic. Suhariyanto, Head of BPS, added that bad weather contributed to inflation as it limited the supply and distribution of food products.

Overall, however, inflation remains under control and low (for Indonesian standards) and actually eased more than had been expected by analysts. Therefore, Indonesian inflation is expected to remain within the central bank’s target range of 2.5 - 4.5 percent (y/y) in full-year 2018.

Meanwhile, Indonesia’s annual core inflation - which excludes administered prices and volatile food prices - eased to 2.58 percent (y/y) in February, from 2.69 percent (y/y) one month earlier.

Inflation in Indonesia:

Month M/M Growth
January 0.62%
February 0.17%
Year-to-Date 0.79%

Headline Consumer Price Index of Indonesia:

Month M/M Growth 2013 M/M Growth 2014 M/M Growth 2015 M/M Growth 2016 M/M Growth 2017
January 1.03% 1.07% -0.24% 0.51% 0.97%
February 0.75% 0.26% -0.36% -0.09% 0.23%
March 0.63% 0.08% 0.17% 0.19% -0.02%
April -0.10% -0.02% 0.36% -0.45% 0.09%
May -0.03% 0.16% 0.50% 0.24% 0.39%
June 1.03% 0.43% 0.54% 0.66% 0.69%
July 3.29% 0.93% 0.93% 0.69% 0.22%
August 1.12% 0.47% 0.39% -0.02% -0.07%
September -0.35% 0.27% -0.05% 0.22% 0.13%
October 0.09% 0.47% -0.08% 0.14% 0.01%
November 0.12% 1.50% 0.21% 0.47% 0.20%
December 0.55% 2.46% 0.96% 0.42% 0.71%
Total 8.38% 8.36% 3.35% 3.02% 3.61%

Source: Statistics Indonesia (BPS)

Inflation in Indonesia and Central Bank (BI) Target:

2014 2015 2016 2017 2018
Inflation (annual % change) 8.4 3.4 3.0 3.6 -
BI Target (annual % change) 4.5 4.0 4.0 4.0 3.5

 

2008 2009 2010 2011 2012 2013
Inflation (annual % change) 9.8 4.8 5.1 5.4 4.3 8.4
BI Target (annual % change) 5.0 4.5 5.0 5.0 4.5 4.5

Source: Bank Indonesia

(SAILINGS/II/SP)


 

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