Indonesia's annual inflation rate declined to 3.28 percent in June 2019 from 3.32 percent in the previous month, but above market expectations of 3.18 percent. Prices rose at softer pace for both transportation, communication & financial services (1.91 percent vs 3.58 percent in May) and health (3.02 percent vs 3.10 percent). On the other hand, cost rose further for: housing & utilities (2.42 percent vs 2.39 percent); foodstuff (4.91 percent vs 4.14 percent); prepared food, beverages, cigarette & tobacco (3.98 percent vs 3.79 percent); clothing (3.77 percent vs 3.31 percent); and education, recreation & sport (3.21 percent vs 3.20 percent). Annual core inflation rose to 3.25 percent in June, the highest since April 2017 and also above forecasts of 3.12 percent. On a monthly basis, consumer prices went up 0.55 percent in June, easing from a 0.68 percent gain in the prior month. Inflation Rate in Indonesia averaged 9.84 percent from 1997 until 2019, reaching an all time high of 82.40 percent in September of 1998 and a record low of -1.17 percent in March of 2000.
Inflation Rate in Indonesia is expected to be 3.30 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Inflation Rate in Indonesia to stand at 3.20 in 12 months time. In the long-term, the Indonesia Inflation Rate is projected to trend around 3.80 percent in 2020, according to our econometric models.