Indonesia experienced deflation of 0,09% (yoy) in February 2025, below Bank Indonesia's target range of 1,5%-3,5%, mainly due to electricity tariff adjustments. Core inflation remained stable, indicating that the decline was not driven by weakening demand. Inflationary pressures are expected to increase in the coming months as demand increases during the fasting month and subsidies end...Read more

The rupiah remained under pressure throughout last month, especially due to the revised expectation that the Fed will cut interest rates only twice in 2025, compared to the previous projection of four rate cuts. The adjustment reflects still-high inflation in the US and the potential inflationary impact of policies that may be taken by the former...Read more

October 2024 marked a decline in headline inflation to 1,71% (yoy) from 1,84% (yoy) in the previous month. Headline inflation in October 2024 reached its lowest point since November 2021 and was relatively within Bank Indonesia's inflation target of 1,5% to 3,5%. The decline in inflation was driven by the regulated price group and the volatile price group. Core inflation slightly...Read more

In August 2024, Indonesia's headline inflation eased slightly to 2,12% (yoy) from 2,13% in July 2024, mainly due to lower food prices. Core inflation rose to 2,02% (yoy), driven by higher prices of gold jewelry, coffee, and education. The rupiah strengthened to Rp15.395/USD in mid-September, supported by strong capital inflows, and foreign exchange reserves reached...Read more