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Indonesia inflation drops faster than expected to below 3 percent
Indonesia saw inflation drop in September to below 3 percent, falling faster than analysts expected, which partly due to base effect of subsidized fuel price hike last year.
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Workers transport rice at Cipinang Rice Central Market in Jakarta on March 15, 2021. (JP/Yulianto Catur Nugroho/wen)
Indonesia saw inflation drop in September to below 3 percent, falling faster than analysts expected.
During a press briefing on Monday, Statistics Indonesia (BPS) showed that headline inflation, or the consumer price index (CPI), grew by 2.28 percent year-on-year (yoy) in September, much lower than the previous month’s 3.27 percent yoy.
The number is far lower than projected by Moody’s Analytics and several other analysts at 2.7 percent. It is also moving closer to the lower bound of Bank Indonesia’s target of between 2 and 4 percent.
Acting BPS head Amalia Adininggar Widyasanti said in the briefing that the food, beverages and tobacco spending group contributed the most to the national inflation and it experienced the highest growth rate of 4.17 percent yoy.
Rice was the commodity with the largest annual inflation contribution in September with a 0.55 percent share, followed by filter clove cigarettes at 0.19 percent and onions at 0.08 percent.
"Rice inflation on a year-on-year basis is currently at its highest. This is not only because of domestic conditions but also disruptions in rice production in the international market," she said.
Read also: Govt to keep an eye on oil prices, projected to surge to $100 by year-end
