This post is also available in:
简体中文 (Chinese)
Indonesia’s inflation rate fell to 2.61% in December, lower than market expectations and within the central bank’s target range. Core inflation fell to 1.80%, the lowest level since December 2021.
Bank Indonesia’s inflation target for 2023 is 2%-4%. Economists say that lowering the inflation rate will reduce the urgency for monetary policymakers, and they expect a possible shift to an easing cycle in the first half of 2024 to maintain financial stability.
However, with expectations that festivals such as Ramadan in March may bring price pressure, the overall inflation rate may rise to above 3% in the first half of 2024. Central bank officials predict that rising global food and energy prices will push headline inflation to 3.2% this year.
(Source: theedgemalaysia Image source: freepik)
