East Timor's annual inflation rate fell to 0.6 percent in July 2019 from 0.9 percent in the previous month. This was the lowest inflation rate since September 2017, as cost of food & non-alcoholic beverages rose at a softer 0.7% (vs 1% in June), mainly milk & cheese (6.9% vs 7.8%), vegetables (5.5% vs 5.6%), and meat (1.2% vs 2.2%). Also, prices went up much less for alcohol & tobacco (0.8% vs 2.5%). At the same time, transport prices was flat, following a 0.7 percent gain in June. In addition, cost dropped further for both furniture & household equipment (-0.5% vs -0.5%) and recreation & culture (-0.2% vs -0.2%). In contrast, inflation was unchanged for housing (at 0.7%), while cost of clothing & footwear rose faster (0.4% vs 0.2%). On a monthly basis, consumer prices declined 0.2 percent in July, compared to a flat reading in June. Inflation Rate in East Timor averaged 4.94 percent from 2004 until 2019, reaching an all time high of 18 percent in February of 2007 and a record low of -2.50 percent in August of 2009.
Inflation Rate in East Timor is expected to be 1.00 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Inflation Rate in East Timor to stand at 2.70 in 12 months time. In the long-term, the East Timor Inflation Rate is projected to trend around 3.00 percent in 2020, according to our econometric models.