Annual Inflation Rate Seen Easing in January

Indonesia's annual inflation rate in January is expected to ease from a month earlier. (JG Photo/Yudha Baskoro)

By : Nilufar Rizki and Tabita Diela | on 5:23 PM January 30, 2018
Category : Business, Economy

Jakarta. Indonesia's annual inflation rate in January is expected to ease from a month earlier, a Reuters poll showed, as transport costs were seen lower and food prices remained under control.

The consumer price index (CPI) was forecast to rise 3.33 percent in January, according to the median forecast of 15 economists polled by Reuters. In December it rose 3.61 percent.

"The moderation is likely to have been driven by lower energy costs and a favorable statistical base," ANZ said in a note dated Jan. 26.

Despite higher global crude oil prices, transport costs would have declined after the government decided not to hike prices in the first quarter of 2018, ANZ said.

On a monthly basis, the inflation rate was seen at 0.68 percent, easing slightly from 0.71 percent in December as year-end festivities ended.

Bank Indonesia governor Agus Martowardojo last week estimated January annual inflation at 3.36 percent and on a monthly basis at 0.73 percent.

The central bank targets a headline inflation rate of 2.5 percent to 4.5 percent in 2018.

Reuters

 

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