Indonesia’s Deposit Insurance Agency (LPS) expects the Country’s inflation to reach 4.7% year-on-year (y/y) in full-year 2017, just within the central bank’s 3-5% (y/y) inflation target. Administered price adjustments will be the primary reason why the inflation rate of Indonesia will accelerate from 3% (y/y) in 2016 to 4.7% (y/y) in 2017. Administered prices are those prices that are set by the Government. Usually, when the Government changes its subsidy policies, it needs to adjust certain prices.To subscribe please click here
