Indonesia’s inflation beats highest forecast

 

Bloomberg

Indonesia’s inflation surprised on the upside in December, challenging the central bank and market’s view that price pressures were well on the wane.
Consumer prices rose 5.51% from a year ago, driven by higher costs of gasoline, household fuels, air freight rates and transport fares, the nation’s statistics agency said. That beats even the highest forecast in a Bloomberg survey of economists, which ranged from 5.18%-5.47%.
Core inflation, which strips out the impact of government-administered and volatile food items, rose 3.36%, in line with the 3.39% market consensus.
Bank Indonesia slowed down its tightening pace in December, raising its key rate by a quarter-point after three consecutive months of half-point moves, as it expected inflationary pressures to wane. The monetary authority saw consumer-price increases decelerating to 5.4% by year-end.

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