The inflation figure moved in reverse direction as it increased to 5.47% (y.o.y), after a downward pattern since September 2022. This mainly contributed by the combination of supply disruptions due to the occurrence of flood during the harvest season and the low base effect that played a role. From the external side, the expectation of...Read More

Massive inflationary pressures last year, were met by consistent monetary tightening efforts by Bank Indonesia since last August. As a result, headline inflation continued to decline and stood at 5.28% (y.o.y) in January 2023. The rapid capital inflow since mid-January, has lifted Rupiah to its strongest level of IDR14,875 in early February and currently stabilized...Read More

Pressured by increasing global energy and food prices combined with seasonal patterns of Christmas and year-end festivity, Indonesia ended 2022 with headline inflation of 5.51% (y.o.y), making the full 2022 headline inflation far above BI’s target corridor. Meanwhile, Rupiah experienced slight appreciation in mid-January to around IDR15,100 per US Dollar supported by modest capital inflows...Read More

November inflation stood at 5.42% (y.o.y), continuing its deceleration pattern in the last three months. A combination of seasonal events as well as impact of inflation controlling efforts by the government and central bank has resulted in a sooner-than-expected inflation peak and more benign inflation rate towards the end of 2022. On the other hand,...Read More

Although easing due to lower food prices, inflation is still far above BI’s target range at 5.95% (y.o.y) in October 2022, following the increase in subsidized fuel prices in early September 2022. On top of that, Rupiah continued to depreciate to IDR15,487 per US Dollar in mid-November. Globally, the Fed is expected to continue its rate hike rally...Read More

Inflation continues to soar above the BI’s target range after the adjustment of subsidized fuels prices in early September 2022. The price level of energy and transportation sectors recorded the highest jump in September 2022 amid the persistently high global energy and food prices. The increase in price level slightly corrected the consumers’ confidence despite...Read More

Athough inflation eased in August 2022, it is still well above BI’s target range and expected to accelerate in the remaining months of 2022 following the fuel price hike. From external side, the Fed’s aggressive move on interest rate hikes, combined with external pressures, will continue to have an adverse impact on emerging markets, including...Read More