Jakarta, CNBC Indonesia – Inflation in Indonesia is projected to stay low and below 2% in 2021. It appears that the limited demand has prevented inflationary pressures in the country.
The Central Statistics Agency (BPS) will publish inflation data for December 2021 on January 2, 2022. The market consensus produced by CNBC Indonesia estimates that inflation in December 2021 will be 0.52% compared to the previous month (From month to month/mtm).
Compared to December 2020 (year for year/ Year) the inflation rate is estimated at 1.81%. Every year in December, the annual inflation rate corresponds to the calendar year or the current year (year-to-date / ytd). So inflation in 2021 is estimated at 1.81%, as is annual inflation.
Meanwhile, annual core inflation is estimated at 1.51% in December 2021. Here, too, this corresponds to the pace throughout 2021.
According to the Price Monitoring Survey (SPH), Bank Indonesia (BI) is forecasting inflation of 0.49% mtm in December 2021 by week IV. This means that inflation will rise to 1.79% throughout 2021.
“The main drivers of inflation from December 2021 to week IV are cayenne pepper raw materials at 0.13% (mtm), cooking oil at 0.07% (mtm), chicken and red chillies at 0.04% (mtm) each, broiler eggs and air transport rates with 0.02% (mtm) each, shallots, powdered detergent soap and cement each with 0.01% (mtm). In the meantime, several raw materials have experienced deflation, especially beef by -0.01% (mtm), ”said the written declaration from BI.
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