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Economist at UOB Group Enrico Tanuwidjaja gave his opinion on the inflation performance in Indonesia.

Key Quotes

“Inflation rate slowed in September to 3.39% yoy vs. August’s 3.49%, mainly driven by slower inflation in food (September’s 5.42% yoy vs. August’s 5.81%); which more than offset the higher clothing price”.

“September’s inflation print remained within the 2.5% to 4.5% of the central bank’s official target range. Going forward, we view that food inflation might move higher closer to year-end, along with other inflation components such as and transport prices amidst some seasonal events and ahead of the year end. Nevertheless, on the back of potentially prolonged stable oil price, and stable administered prices, we keep our inflation forecast unchanged at 3.2% in 2019 (slightly higher than 2018’s 3.1% inflation average). Low, stable, and manageable inflation rates will continue to bode well in supporting the overall economic growth momentum for Indonesia“.