Indonesia’s annual inflation rate inched up to 1.68 percent in December 2020, the highest since June, from 1.59 percent in November and compared to market expectations of 1.61 percent. Food, drinks and tobacco inflation accelerated to an 8-month high of 3.63 percent in December from 2.87 percent in November. Upward pressure also came from: housing & utilities (0.35% vs 0.41%); food services & restaurant (2.26% vs 2.11%); recreation, sport & culture (0.73% vs 0.83%); education (1.40% vs 1.40%); and furnishings (1.03% vs 1.16%). On the other hand, prices fell for both transport (-0.85% vs -0.47%) and information, communication & financial services (-0.35% vs -0.43%). Annual core inflation rate edged down to 1.60 percent, the lowest since the series began in 2008 and compared to forecasts of 1.7 percent. On a monthly basis, consumer prices increased 0.45 percent in December, the most since June last year, after a 0.28 percent gain in November.
