Indonesia Inflation Rate Lowest in Over 3 Years

Indonesia’s annual inflation rate fell to 1.55% in November 2024 from 1.71% in the prior month, marking the lowest level since July 2021 but slightly exceeding market forecasts of 1.5%.

The latest result remains within the central bank’s target range of 1.5 to 3.5%.

Food prices rose the least since August 2020 (1.68% vs 2.35% in October), as rice supply stayed ample following delays in the harvest season.

Inflation also tended lower for housing (0.59% vs 0.60%), recreation & culture (1.49% vs 1.53%), education (1.89% vs 1.90%), and health (1.65% vs 1.71%).

Meantime, a drop in communication cost continued (-0.28% vs -0.28%).

Conversely, accommodation prices rose slightly (2.40% vs 2.36%), along with signs of recovery in transport costs (0.03% vs -0.08%), and steady inflation in furnishing (1.08%) and clothing (1.20%).

The core inflation rate hit a 16-month high of 2.26%, above estimates of 2.20%.

Monthly, the CPI rose 0.30% the most in eight months, slightly topping consensus of 0.26%.