, Indonesia

Indonesia's food prices hiked by a whopping 12.9%

It drove inflation to a 22-month high.

According to DBS, in Indonesia, the food component is the main driver of inflation. Food prices have risen by 7.6% since the beginning of the year and in YoY terms, the figure has surged to 12.9%. 

With food prices (including processed food and tobacco) taking up a hefty 36% of the CPI basket, this has single-handedly pulled headline inflation to a 22-month high.

While bad weather in January has contributed to food price pressures, it is the persistent price uptrend in selected spices that that has kept the food price index rising.

Here's more from DBS:

At this point, there has not been spillover into the other components of CPI. However, with a weak rupiah and uncertainties about the subsidized fuel policy, inflation expectations risk becoming unhinged.

Going forward, the government may tweak import policies to ensure sufficient supply of spices to normalize food prices.

Some signaling by the central bank (BI) is probably needed to anchor inflation expectations and these can come in the form of FASBI deposit rate hikes.

There are considerable upside risks to our 5.3% inflation forecast for the year.

Join Singapore Business Review community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Event News

Event News

SBR National Business Awards 2024 Winner: Wiseasy Technology Pte Ltd Cards & Payments
Lay Cheng Tan, Co-Founder & Chief Investment Officer, and Mayank Raheja, Managing Director (EMEA & SA) of Wiseasy Technology Pte Ltd, provided insights into preventing fraud and inefficiency with the WiseQ QR Payment Solution.
Cards & Payments SBR National Business Awards 2024 Winner: Wiseasy Technology Pte Ltd
Lay Cheng Tan, Co-Founder & Chief Investment Officer, and Mayank Raheja, Managing Director (EMEA & SA) of Wiseasy Technology Pte Ltd, provided insights into preventing fraud and inefficiency with the WiseQ QR Payment Solution.