By Stefanno Sulaiman and Gayatri Suroyo
Indonesia's annual inflation rate remained unchanged at 2.12% in August, according to official data released on Monday. This figure falls comfortably within the central bank's target range of 1.5% to 3.5% and aligns with market expectations.
The August headline inflation rate marks the lowest level since February 2022, in line with forecasts from a Reuters poll. Additionally, the annual core inflation rate increased slightly to 2.02% from 1.95% in July, surpassing the poll's forecast of 1.98%.
Despite the stable inflation, Bank Indonesia (BI) has maintained relatively high interest rates to prioritize currency stability and mitigate global market volatility. Governor Perry Warjiyo has emphasized the importance of currency stability for the current quarter, with potential monetary policy easing in the following quarter to stimulate economic growth.
Analysis:
The steady inflation rate in Indonesia indicates a stable economic environment, with BI's measures aimed at maintaining currency stability and supporting economic growth. Investors can expect continued policy focus on stability in the short term, with potential easing measures to boost growth in the near future. This information is crucial for individuals looking to understand the economic landscape in Indonesia and make informed decisions regarding investments and financial planning.
