Economist at UOB Group Enrico Tanuwidjaja comments on the latest inflation figures in Indonesia.

Key Takeaways

“Significant increases in cooking oil, eggs, fresh fish and meat prices, as well as overall transportation prices drove inflation past the 3% mid-point in Apr.”

“Apr’s headline inflation jumped to 3.5% y/y vs 2.3% average in 1Q22 while core inflation rose from 2.1% y/y average in 1Q22 to 2.6% in Apr, a sign of continued recovery in domestic demand.”

“Going forward, we expect the headline inflation to soon break the 4% upper-limit of BI’s inflation target range, though this has been embedded into our inflation forecast average of 3.3% in 2022.”