Indonesia’s annual inflation rate declined to a seven-month low of 4.97% in March of 2023 from 5.47% in the previous month and below market consensus of 5.2%. The inflation rate stayed above the upper limit of the central bank’s 2-4% target for the tenth straight month. Prices rose softer for food and beverages (6.05% vs 7.23% in February), housing (2.74% vs 3.43%), transport (13.72% vs 13.59%), furnishings (3.72% vs 4.02%), accommodation/restaurant (4.00% vs 4.08%), and education (2.75% vs 2.76%).
Meanwhile, clothing inflation was steady (at 1.18%). In addition, prices of information & financials fell slightly more (-0.23% vs -0.20%). Core inflation eased to an eight-month low of 2.94% in March from 3.09% in February, below forecasts of 3.05%. On a monthly basis, consumer prices went up 0.18% in March, after a 0.16% gain in February, and below market consensus of a 0.29% rise.