Inflation is expected to range from four to six percent year-on-year in the first half of 2023. (Photo: MI)

Indonesia's Annual Inflation Lower Than Expected as Food Prices Maintained

Wahyu Dwi Anggoro, Despian Nurhidayat • 02 January 2023 14:49

Jakarta: The Central Statistics Agency (BPS) noted that Indonesia's consumer price index (CPI) in 2022 was recorded at 113.59 or an increase of 5.51 percent from the previous year which reached 107.66.

Bank Mandiri Chief Economist Faisal Rachman said the country's annual inflation in 2022 was lower than his initial estimate of 6.27 percent.

"Realized inflation in 2022 is lower than our initial estimate of 6.27 percent, thanks to the government's success in maintaining food supplies and controlling food prices," he said here on Monday, January 2, 2023.

Going forward, Faisal estimated that annual inflation would continue to subside but remain above the target range of two to four percent at least during the first semester of 2023.

"Inflation is expected to range from four to six percent year-on-year in the first half of 2023 before declining towards the target range in the second half of 2023," said Faisal.

Furthermore, Faisal revised down his 2023 inflation forecast from 4.02 percent to around 3.60 percent.

(WAH)