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INDONESIA: Electricity Discount Pushes Headline Below Floor Of Band

INDONESIA

Indonesian headline and core inflation continued to diverge in January with the former falling below the bottom of Bank Indonesia’s 1.5-3.5% corridor, while core rose 0.1pp to 2.4%, 0.7pp higher than a year ago. BI cut rates 25bp in January with the next decision on February 19. IDR stability is likely to remain its focus and it will probably also look through the fall in headline and focus on core inflation as the former was impacted by government policy. 

Indonesia CPI y/y%

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Indonesian headline and core inflation continued to diverge in January with the former falling below the bottom of Bank Indonesia’s 1.5-3.5% corridor, while core rose 0.1pp to 2.4%, 0.7pp higher than a year ago. BI cut rates 25bp in January with the next decision on February 19. IDR stability is likely to remain its focus and it will probably also look through the fall in headline and focus on core inflation as the former was impacted by government policy. 

Indonesia CPI y/y%

Keep reading...Show less