Indonesia recorded its first positive headline inflation in 2025 in March. Recorded at 1,03% (yoy), headline inflation increased from -0,09% (yoy) in the previous month. The return of inflation to positive territory largely reflects the end of the 50% electricity tariff discount that took place from January to February 2025. Inflation is expected to increase slowly as various...Read more

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

Inflation in November 2024 fell to 1,55% (yoy) and reached its lowest point since April 2021. The lower inflation figure in November 2024 was mainly driven by lower food inflation and volatile food price deflation due to the high-base effect and abundant food supplies after the harvest season. Capital markets in various developing countries are under...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

Being in the middle of BI's target range, general inflation is currently at 2,51% (yoy) in June 2024, slowing down from the May 2024 figure of 2,84% (yoy). The slowdown in general inflation is caused by falling food prices after the harvest season and low demand after Eid al-Fitr celebrations which end in April 2024. Because the Fed is currently...Read more

Being in the middle of BI's target range, general inflation is currently at 2,51% (yoy) in June 2024, slowing down from the May 2024 figure of 2,84% (yoy). The slowdown in general inflation is caused by falling food prices after the harvest season and low demand after Eid al-Fitr celebrations which end in April 2024. Because the Fed is currently...Read more