Indonesia: Inflation records multi-month highs in November – UOB

Pablo Piovano FXStreet

Economist at UOB Group Enrico Tanuwidjaja comments on the latest inflation figures in Indonesia.

Key Takeaways

“Indonesia’s annual inflation rate rose to 1.75% y/y in November vis-à-vis 1.66% a month earlier, lower than market expectation of 1.80% (Reuters). This was the highest inflation rate since May, amidst loosening restrictions in some regions in the country. On a month-on-month basis, Indonesia’s inflation came in at 0.37% inflation in November, following a reading of 0.12% m/m in October.”

“Annual core inflation rate rose slightly to 1.44% y/y in November (vs. October’s at 1.33%) and volatile prices component slowed to 3.05% y/y (vs. October 3.16%). Meanwhile, the government-administered prices component rose in November to 1.69% y/y vs. 1.47% in the previous month.”

“Going forward, we expect the headline inflation to gradually recover, and exceed the lower end of the government's 2021 inflation target (2.0% - 4.0%), as the daily COVID-19 cases are now more under control.”

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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