Indonesia's December headline inflation rate gains 3.40% year-on-year

Indonesia's December headline inflation rate gains 3.40% year-on-year

In December, Indonesia's headline inflation rate is believed to have ascended moderately, which is the first ascend after five months of dives, although it stayed within the major bank's target band, as a Reuters survey disclosed.

In December, the consumer price index rallied 3.40% from 2016, versus November’s outcome of 3.30%, according to the median estimate of 11 experts surveyed by Reuters.

On a monthly basis, the inflation rate hit 0.48%, picking up tempo from November’s 0.20%.

Some experts cited soaring demand for goods as well as services during Christmas celebration and also ahead of New Year holidays as the key factor for December's inflationary pressure.

Bank Indonesia has predicted a headline inflation rate of about 3%-3.5% by the end of 2017 and 2.5%- 4.5% in 2018.

The annual core inflation rate, stripping out government-controlled as well as volatile food prices, was observed soaring marginally to 3.08%, according to the median forecast of 7 experts having a view on December core inflation.


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