Indonesia’s January inflation at 0.76% y/y: statistics bureau

INDONESIA’S inflation rate was 0.76 per cent in January, official data showed on Monday, dropping sharply from a rate of 1.57 per cent in December and coming in below the lower bound of the central bank’s target range for the year.

The rate in January was below analysts’ estimate of a 1.88 per cent rate in Reuters poll and outside Bank Indonesia’s (BI) target range of 1.5 per cent to 3.5 per cent.

On month-on-month basis, the consumer price index dropped by 0.76 per cent in January mainly due to a 50 per cent discount in electricity tariffs for some customers and lower airfares, the statistics bureau.

BI delivered a surprise cut in rates at its policy review last month, and said inflation was expected to remain contained over 2025 and 2026. It projected a 2.7 per cent annual inflation rate at end-2025, with core inflation at 2.6 per cent.

The statistics agency will release the core inflation data later on Monday. REUTERS