Enrico Tanuwidjaja: "We Maintain Our Inflation Forecast For 2022 At 4.9%"

Economist at UOB Group Enrico Tanuwidjaja reviews the latest release of inflation figures in Indonesia.

Key Takeaways

“Sep’s headline inflation rose sharply, but not unexpected, by 1.2% m/m or 6% y/y (4.7% in Aug) while core inflation rose to 3.2% y/y (prior 3%).”

“Inflation in Sep was mainly driven by the effects of fuel price hike on transport prices and on higher food prices.”

“As we have alluded to in our latest quarterly publication, we keep our 2022 inflation forecast (average) at 4.9%. We also maintain our view for BI to hike rates to reach 5% by year-end.”