East Timor's annual inflation rate rose to 0.9 percent in August 2019 from 0.6 percent in the previous month. Prices of food & non-alcoholic beverages increased faster (1.2% vs 0.7% in July), mainly milk & cheese (6.1% vs 6.9%), vegetables (7.2% vs 5.5%), and meat (1.1% vs 1.2%). At the same time, there was a rebound in cost of recreation & culture (0.2% vs -0.2%), while inflation was unchanged for clothing & footwear (at 0.4%). Meantime, cost went up slightly less for both alcohol & tobacco (0.7% vs 0.8%), and housing (0.6% vs 0.7%). Also, prices fell for both transport (-0.3 percent vs a flat reading in a month earlier), and furniture & household equipment (-0.4% vs -0.5%). On a monthly basis, consumer prices increased 0.1 percent in August compared to a 0.2 percent fall in July. Inflation Rate in East Timor averaged 4.94 percent from 2004 until 2019, reaching an all time high of 18 percent in February of 2007 and a record low of -2.50 percent in August of 2009.
Inflation Rate in East Timor is expected to be 1.00 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Inflation Rate in East Timor to stand at 2.70 in 12 months time. In the long-term, the East Timor Inflation Rate is projected to trend around 3.00 percent in 2020, according to our econometric models.