Indonesia: Inflation eases in November from October
Latest reading: Consumer prices increased 2.7% on a year-on-year basis in November, following a 2.9% increase in the prior month.
Relative to the previous month’s figures, price pressures reduced for food, beverages and tobacco in November (+4.2% on a year-on-year basis vs +5.0% in October). In contrast, there were higher price pressures for clothing and footwear (+0.8% vs +0.7% in October) and transport (+0.7% vs +0.5% in October). Finally, the variations in housing, water, electricity and household fuels plus recreation and entertainment were the same as in the prior month (+1.6% and +1.2%, respectively).
Meanwhile, core consumer prices were up 2.4% in annual terms in November, stable from the prior month’s reading.
Lastly, consumer prices were up 0.17% in November in month-on-month terms, following a 0.28% rise in the previous month.
Panelist insight: EIU analysts said:
“We expect inflation to edge higher in the coming months as the effects of BI’s cumulative 150 basis points of cuts this year, coupled with the government’s expansionary fiscal stance, filter through gradually to the real economy. Government support programmes, including food aid and tax subsidies for low-income groups, will further stimulate consumption, amplifying inflationary risks. Meanwhile, recurring supply shocks to agricultural products will also pose persistent upside risks to inflation.”