Indonesia's annual inflation rate decreased to 2.72 percent in December 2019 from 3.0 percent in the previous month, below market expectations of 2.9 percent. This was the lowest inflation rate since March, as prices rose softer for: housing & utilities (1.75 percent vs 1.79 percent in November); foodstuff (4.28 percent vs 4.97 percent); transportation, communication & financial services (0.17 percent vs 0.87 percent); clothing (4.93 percent vs 4.96 percent); education, recreation & sport (3.25 percent vs 3.40 percent). On the other hand, prices increased faster for both prepared food, beverages, cigarette & tobacco (3.97 percent vs 3.91) and health (3.46 percent vs 3.37 percent). Annual core inflation fell to 3.02 percent, the lowest since October last year, below forecasts of 3.11 percent. On a monthly basis, consumer prices rose 0.34 percent in December, the highest since June, after a 0.14 percent gain in the prior month. Inflation Rate in Indonesia averaged 9.69 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. source: Statistics Indonesia
Inflation Rate in Indonesia is expected to be 2.60 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 3.30 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.