Indonesia’s annual inflation rate was at 2.06% in February 2022, compared with market consensus of 2.2% and January’s 20-month high of 2.18%. The latest figure was within the central bank’s target range of 2 to 4% for the second straight month, as prices slowed for housing & utilities (1.46% vs 1.24% in January), food, drinks, and tobacco (2.51% vs 3.45%), transport (1.67% vs 1.91%).
At the same time, cost of information, communication & financial fell further (-0.25% vs -0.24%). In contrast, inflation accelerated for furnishings (3.40% vs 3.31%), clothing (1.89% vs 1.85%), food services & restaurant (2.97% vs 2.70%) and education (1.72% vs 1.64%). The annual core inflation rate rose to an 18-month high of 2.03% yoy from 1.84% in January, above market consensus of 1.92 percent. On a monthly basis, consumer prices unexpectedly edged down 0.02% in February, the first fall in five months, compared with forecasts of a 0.03% rise and a 0.56% gain in January.