Indonesia inflation: Headline down, but core up - ANZ

Analysts at Australia and New Zealand (ANZ) banking group (ANZ) offer a quick reaction to the Indonesian CPI report released earlier today.

Key Quotes:

“Indonesia’s headline CPI edged down marginally in June to 3.28% y/y. Although core and volatile food inflation rose, this was offset by lower administered price inflation.

The big picture is that inflation remains under control and comfortably within the central bank’s 2.5-4.5% target band.

We continue to see scope for the policy rate to be lowered by 75bps over the next one year, with the first potentially materializing in July provided that IDR stability is maintained.”