Indonesia’s CPI hits 4.32% in November

Nathan Andrada – Fourth Estate Cooperative Contributor

Jakarta, Indonesia (4E) – Indonesia, Southeast Asia’s biggest economy, announced on Monday that consumer prices dropped in November amid lower food prices.

Central Statistics Agency deputy chief Sasmito Hadi Wibowo said that the consumer price index (CPI) in November gained 4.32 per cent from the previous year and lower compared to the 4.61 per cent rise in the previous month.

Month-on-month inflation was at 0.07 per cent, down from the 0.16 percent rise in October. Core inflation, which excludes food prices, was registered at 4.40 per cent, lower than October’s 4.59 per cent rise.

The inflation rate is still within the 3.5 to 5.5 per cent target range of the central bank, giving the bank the latitude to maintain its record-low interest rate at 5.75 per cent, which has remained unchanged since February.

The central bank’s most recent decision was at the beginning of November where it kept the rate unchanged for the ninth straight month. It plans to hold a meeting on Dec. 11 to decide on the direction of the basic rate.

Indonesia’s gross domestic product (GDP) rose by 6.17 per cent in the July to September quarter, according to the statistics bureau. Lower exports amid the slowdown in the global economy has been countered by rising investment and strong domestic consumption.

Hatta Rajasa, Coordinating Minister for Economy in Indonesia, said that the economy may grow 6.4 percent in the final quarter, setting the full-year GDP estimate to at least 6.3 per cent.

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