Indonesia skyline

Indonesia Inflation April 2022

Indonesia: Inflation comes in at highest level in over three years in April

Consumer prices increased 0.95% from the previous month in April, accelerating from the 0.66% increase logged in March. April’s result marked the highest reading since January 2017. The result was driven by quicker increases in prices for food.

Inflation increased to 3.5% in April, following March’s 2.6%. April’s result marked the highest inflation rate since December 2017. Accordingly, the trend pointed up mildly, with annual average inflation coming in at 1.9% in April (March: 1.8%). Lastly, core inflation rose to 2.6% in April, from March’s 2.4%.

Commenting on April’s result and its impact on Bank Indonesia’s upcoming meeting, Jonathan Sequeira Rina Jio and Andrew Tilton economists at Goldman Sachs, noted:

“With growth rising faster than we had anticipated, and inflation likely to breach the upper end of the inflation target band later this year, we’re building in a faster pace of tightening into our Bank Indonesia (BI) policy rate forecast path. We now expect BI to hike 50 basis points (bp) in Q3 and 75bp in Q4 for a total of 125bp of hikes this year (vs. 75bp previously), with another 100bp of hikes in H1 2023.”

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest X Download Fullscreen