Indonesia’s Inflation Slightly Eases in February

Annual inflation rate of Indonesia slightly lowers in February hitting its lowest point since December 2016, as prices of some raw food products decline, according to the report from the Central Statistics Agency on Thursday.

The consumer price index (CPI) increased 3.18 percent year-on-year in February, slower than the 3.25 percent logged in January. The rate forecast was 3.28 percent.

Indonesia’s government has a target rate increase of 3.5 percent for 2018, while the central bank’s target is between 2.5 percent to 4.5 percent.

“Rising prices in almost all spending groups contribute to February’s inflation rate drop, with the biggest being foods, drinks, cigarettes, and other tobacco products,” BPS head, Suhariyanto said in a statement.

The CPI eased 0.18 percent on a monthly basis in February from 0.62 percent in January, as there was also a decline in the price of raw food, including red chili peppers, chicken meat, and vegetables.

However, rice and garlic still accounted for most of the food prices’ increase last month, but the harvest season in March is expected to lower prices, Suhariyanto said.

Meanwhile, the annual core inflation rate, excluding volatile food prices and administered prices, eased 2.58 percent from 2.69 percent in January.

February was the third month where the core inflation rate was below 3 percent.

HQBroker is here to give you a daily news roundup about the forex, commodities, technologies, automobiles, and economies. You can open an account now and make yourself updated with essential news in the market.