Institute for Economic and Social Research – Faculty of Economics and Business – Universitas Indonesia

MACROECONOMIC ANALYSIS SERIES: Inflation Outlook 2021

January 14, 2021

Throughout 2020, we observe an overall shallow inflation landscape, as made apparent by its inflation rate being the lowest in many years before (1.68%). The most important contributor to such a decrease in inflation is the administered inflation, for whic h we have observed a decrease of 0.26 bps from last year. The core inflation rate also contributes to an even more significant decrease at 1.6 bps lower than the preceding year.

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