The Statistics Bureau revealed that Inflation rate in Indonesia has eased to a near decade low-at the lower end of the central bank’s target range-due to falling prices.
According to figures released by the statistics office in Jakarta on Friday, in early February consumer prices rose by 2.57 percent- which was the lowest since November 2009. Bank Indonesia’s key rate remains unchanged at 6 percent in the last three policy meetings. The Central Bank has a target band from 2.5 percent to 4.5 percent, and inflation is currently seen at the lower end. Price pressures have also been easing, despite subdued fuel and food costs. Consumer prices were seen to have fallen by 0.08 percent in February from the previous month.
With cost of living being a key voter concern in Southeast Asia’s biggest economy, many consider the low inflation rate as a timely election booster for President Joko Widodo, as he bids for a second term at the Presidential election next month. The inflation rate is seen moderating across Southeast Asia, with falling consumer prices in Malaysia and The Philippines.