Indonesia’s annual inflation inched up to 1.59 percent in August of 2021 but slightly below forecasts of 1.60 percent. This was the highest inflation rate since May, mainly due to a faster rise in prices of food, drinks and tobacco (3.31% vs 2.74%), housing & utilities (0.39% vs 0.36%), transport (0.34% vs 0.25%), amid easing restrictions in some regions in Indonesia. Also, prices increased more for furnishings (1.99% vs 1.79%), education (2.26% vs 1.63%). Meanwhile, prices continued to rise for both food services & restaurant (2.55% vs 2.59%) and clothing and footwear (1.04% vs 1.17%). By contrast, prices of information, communication & financial services edged down (-0.02% vs 0.02%). Annual core inflation rate inched down to a 4-month low of 1.31 percent, but slightly above market forecasts of 1.30 percent. On a monthly basis, consumer prices edged up 0.03 percent in August, matching market consensus, following a 0.08 percent rise in July.
