, Indonesia

Indonesia's February inflation predicted to ease to 8%

A slight increase from previous month.

According to DBS, Indonesia's Feb CPI inflation is due on Monday. It is likely to have eased slightly to 8.0% YoY from 8.2% in Jan. BPS, the Statistics Agency, has not released the historical breakdown of the new CPI series. Based on our estimates, the details will not differ too much from the previous CPI series (using 2007 instead of 2012 as the base year).

Here's more:

Among the major components in the CPI basket, only housing/utilities continue to see some upward pressure in prices. Plans for gradual increase in electricity tariffs may sustain pressure going forward. There is also some lagged impact from the sharp depreciation in the rupiah last year.

Food inflation (raw and processed) remains rather elevated, but it has been moving sideways in recent months. Meanwhile, inflation in the transport/communication component is clearly trending downwards. Impact from fuel price hike in Jun13 has pretty much subsided by now.

Taken together, food and transport/communications make up 54.2% of the CPI basket, more than double that of housing/utilities. With inflation in food and transport/communications trending lower, expect CPI inflation to continue easing going forward. 

Join Singapore Business Review community
A NOTE FROM SINGAPORE BUSINESS REVIEW

The people you want to reach are already in this room.

Every quarter, SBR lands on the desks of the founders, CFOs, and directors running Asia's most consequential companies. Every day, they open our newsletter and read our website. It's a room that took twenty years to build — and it's the one most of our partners are trying to get into.

The good news is that the door is open. We work with companies on thought leadership articles, sponsored content, industry summits across Southeast Asia, regional awards programmes, podcasts, and media placements in print and digital. The shape of the right partnership depends on what you're trying to do, which is why we'd rather start with a conversation than send a rate card.


If you have something this room should know about, tell us. We'll tell you honestly whether we can help, and how.

No rate cards until we understand the brief. It's a better use of everyone's time.