Indonesia: August CPI to rise to 3.50% y/y – TD Securities

In the view of the analysts at TD Securities, the Indonesian August month CPI is likely to accelerate by 0.12% m/m amid a lower base effect.

Key Quotes:

“IDR A lower base from a year ago will likely result in a 0.12% m/m increase in August CPI to 3.50% y/y, from 3.32% in July.

This ought to leave inflation at a comfortable level from Bank Indonesia’s perspective.

We expect food price gains to continue to moderate while other components are likely to remain subdued.

Core inflation is likely to remain close to the 3.18% y/y rate registered in July.”