Indonesia’s annual inflation rose to an 18-month high of 1.87% in December of 2021 from 1.75% in November and compared with market consensus of 1.8%, as consumption strengthened during Christmas and end-year holidays on the back of a further easing in pandemic curbs. Main upward pressures came from housing & utilities (0.76% vs 0.69% in November), food, drinks and tobacco (3.09% vs 2.98%), transport (1.58% vs 1.42%), furnishings (2.66% vs 2.49%), clothing (1.53% vs 1.34%), food services & restaurant (2.68% vs 2.71%) and education (1.6% vs 1.6%).
By contrast, prices of information, communication & financial fell (-0.07% vs 0.02%). For 2021, the country’s central bank targeted consumer price inflation to be in the range of 2% to 4%. The annual core inflation rate rose to an 11-month high of 1.56% yoy from 1.44% in November. On a monthly basis, consumer prices went up 0.57% in December, the most since May 2019, after a 0.37% rise in November, and compared with consensus of 0.52%.