Indonesian Inflation Rising – Rate Cut by Central Bank Unlikely

Indonesia’s headline inflation rate is forecast to have continued accelerating in February, economists and a high-level government official said on Thursday.

Inflation already accelerated in January, with the consumer price index rising 4.57 percent year-on-year to the highest rate in three months. That compared to a 4.3 percent rise in December.

January’s rise was attributed to supply disruptions following major wet season rains and an increase in electricity tariffs for certain households.

A Reuters survey of several economists produced an average projection for February inflation at 4.81 percent. That rate would still be within Bank Indonesia’s target of 3.5 percent to 5.5 percent this year.

The survey also predicted core inflation, which excludes items subject to price volatility, at 4.35 percent, slightly changed from the previous month’s 4.32 percent.


This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Mingze Wu

Mingze Wu

Currency Analyst at Market Pulse
Based in Singapore, Mingze Wu focuses on trading strategies and technical and fundamental analysis of major currency pairs. He has extensive trading experience across different asset classes and is well-versed in global market fundamentals. In addition to contributing articles to MarketPulseFX, Mingze centers on forex and macro-economic trends impacting the Asia Pacific region.
Mingze Wu