Indonesia's annual inflation rate increased to 3.49 percent in August 2019 from 3.32 percent in the previous month, slightly below market expectations of 3.54 percent. This was the highest inflation rate since December 2017, as prices increased faster for: foodstuff (5.81 percent vs 4.85 percent in July); clothing (5.18 percent vs 4.19 percent); education, recreation & sport (3.48 percent vs 3.30 percent), and health (3.34 percent vs 2.93 percent). On the other hand, inflation slowed for: housing & utilities (2.37 percent vs 2.40 percent); transportation, communication & financial services (1.80 percent vs 2.21 percent), and prepared food, beverages, cigarette & tobacco (3.67 percent vs 3.77 percent). Annual core inflation came in at 3.30 percent, the highest since March 2017, and above forecasts of 3.17 percent. On a monthly basis, consumer prices went up 0.12 percent in August, easing from a 0.31 percent gain in the prior month, the lowest since March. Inflation Rate in Indonesia averaged 9.79 percent from 1997 until 2019, reaching an all time high of 82.40 percent in September of 1998 and a record low of -1.17 percent in March of 2000.
Inflation Rate in Indonesia is expected to be 3.90 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Inflation Rate in Indonesia to stand at 3.40 in 12 months time. In the long-term, the Indonesia Inflation Rate is projected to trend around 3.80 percent in 2020, according to our econometric models.