Indonesia: Inflation remains subdued in August - ING

Joey Cuyegkeng, Senior Economist at ING, notes that Indonesia’s August inflation inched higher to 3.2% while the eight-month 2018 average of 3.25% is below Bank Indonesia’s (BI’s) 3.5% target.

Key Quotes

“Moderating food, transportation and clothing prices have kept headline inflation well within BI’s inflation target range of 2.5% to 4.5%.”

“Inflation is likely to inch higher over the monetary policy horizon, with the Bloomberg consensus forecasting an average inflation rate of 3.5% this year and 3.9% next year.”

“We are more optimistic and expect an average inflation rate of 3.3% this year and 3.6% in 2019.”