Indonesia’s December inflation rate eases to 1.57% yoy, just below forecast

Low inflation is due to subdued consumer demand, stable global energy prices and the fading impact of weather-related food price shocks


Elisa Valenta
Published Thu, Jan 2, 2025 · 01:12 PM

Indonesia's central bank, led by governor Perry Warjiyo, has targeted inflation in 2024 and 2025 to come in at between 1.5 and 3.5 per cent. 

[JAKARTA] Indonesia’s annual inflation rate eased to 1.57 per cent in December last year. Data from Statistics Indonesia on Thursday (Jan 2) also indicated that month on month, inflation edged up slightly from November.

The figure marks a historic low for the nation, said Pudji Ismartini, deputy chief statistician at Statistics Indonesia.

December’s inflation was slightly below market expectations, with a Reuters survey projecting an annual rate of 1.6 per cent.

The country’s central bank targeted inflation in 2024 and 2025 to be within the range of 1.5 and 3.5 per cent.

Analysts attributed the low inflation to a combination of subdued consumer demand in South-east Asia’s largest economy, stable global energy prices and the fading impact of weather-related food price shocks that affected the market earlier in 2024.

A series of economic stimulus measures, designed to reignite consumer spending, were unveiled at the end of last month in response.