Inflation rate in Indonesia rises slightly to reach 1.57 percent


(MENAFN) Official data released by Indonesia's Central Statistics Agency on Thursday revealed a slight uptick in consumer price inflation for the past month. The annual inflation rate in December stood at 1.57 percent, marginally higher than November’s rate of 1.55 percent but slightly below the anticipated 1.6 percent. For comparison, the inflation rate in December 2023 was significantly higher at 2.61 percent, highlighting a noticeable decline in inflation over the past year.

On a monthly basis, the inflation rate in December reached 0.44 percent, slightly exceeding market expectations of 0.4 percent. The consumer price index (CPI) saw a modest increase, rising to 106.80 points in December from 105.15 points in November. These figures indicate a steady but controlled rise in overall price levels, reflecting the dynamics of both local and global economic factors.

Bodji Smartini, deputy head of the statistics agency, explained that the inflation observed last month was largely driven by changes in global commodity prices and local consumption trends. Price increases were recorded across all major sectors, indicating broad-based inflationary pressure. This trend underscores the influence of international market fluctuations on Indonesia’s economy, as well as the seasonal impact of local demand patterns.

It is worth noting that Indonesia’s government has set a target inflation rate of approximately 2.5 percent. Despite the recent increases, the current inflation rate remains below this target, suggesting that inflation is under control. However, ongoing monitoring of price trends will be crucial, especially given the pressures stemming from global commodity markets and domestic consumption patterns.

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