According to BPS, food inflation was trending down to 0.13% MoM (3.40% YoY) as New Year high season has ended. Following the uptrend of oil price, Pertamina increased its non-subsidized fuel even until 2 times for several products.
Bank Indonesia (BI) retained its policy rate at 4.25% in the latest BoG meeting. Central bank kept its eye open to watch rising global volatility due to increasing expectation of higher FFR increase in 2018.
Full year growth was at 5.07% which made Indonesia for the first time reached a trillion US dollar GDP. Food and Beverages, which had biggest proportion of consumption, stimulated higher consumption growth as it grew 5.37% YoY or the highest in 2017.
BPS recorded Indonesia export price experienced deflation at -1.49% YoY (-0.05% MoM), making the export value growth remained single digit. Significant growth of imports brought trade balance to deficit territory for two months in a row.
Annual inflation was dragged down to 3.25% due to high basis in January 2016. In line with our estimation, food inflation remained high in the beginning of 2018 with 2.34% MoM (2.95% YoY). Pertamina increased some fuel prices like Pertalite (Ron 90) by 1.3% to Rp7,600/liter and Pertamax (Ron 92)...
Bank Indonesia (BI) retained its policy rate at 4.25% in the beginning of 2018. BI decided to accelerate the implementation of new macroprudential policy after assessing weak domestic banking intermediation and procyclicality behavior.
BPS reported that Indonesia’s exports were down 3.45% MoM (6.93% YoY) in December, below our expectation and Bloomberg consensus (see table on the left). BPS reveals that aggregate price only grew 0.71% YoY and even decrease on monthly basis at -4.39% MoM. November imports data still had a...