According to expectations, Indonesia's inflation rate decreased to 2.57% in January

According to expectations, Indonesia's inflation rate decreased to 2.57% in January

JAKARTA: According to numbers released by the statistics agency on Thursday, Indonesia's inflation rate decreased to 2.57 percent in January, essentially in line with market expectations and close to the middle of the central bank's target range.

January's annual rate of 2.55 percent was predicted by Reuters polling economists, which is a decrease from December's 2.61 percent.

This year, Bank Indonesia (BI) wants to limit inflation between 1.5 and 3.5 percent.

After accounting for fluctuating food costs and government-regulated prices, the core inflation rate fell to 1.68 percent in January from 1.80 percent the month before. The study had anticipated a 1.76 percent rate.

The consumer price index's base year was formerly 2018, however the Bureau of Statistics announced that it has been moved to 2022.

The largest economy in Southeast Asia will have inflation within the target range until mid-20231. This is because BI interest rates will increase by 250 basis points between August 2022 and October 2023.

Food costs have increased nationally despite the low headline numbers due to supply difficulties brought on by the country's drier-than-normal weather.

In January, volatile food inflation increased to 7.22% from 6.73% in December, mostly due to higher costs for chicken, rice, garlic, tomatoes, and chillies.

Governor of BI Perry Warjiyo has said that he believes there is room for the central bank to begin reducing interest rates in the second half of 2024; nevertheless, pressure on food prices poses dangers to the upside for BI, according to other authorities. Inflation forecast.