A Brief Outlook of 10 Years Indonesia`s Inflationary Pressure

                  As South East Asia`s largest economy, Indonesia is recently enjoying strong economic growth and betterment of macroeconomic fundamental in response to domestic consumers led-economy. However, there is still main concern now for Indonesia Bank and other emerging-market central banks in balancing their economic growth namely Inflationary pressure which is likely to persist as growth forecasts for this country remains high.
The major issue of 10 years Indonesia`s headline inflation is the domination of the impact of supply side prices, especially from volatile food prices and administered prices. Concerning Rapid growth in the emerging market economy like Indonesia, global commodity prices are greatly essential, driven by food prices, its CPI on average was 13.26 % in the past 10 years (Trading Economics, 2012). Even though there is still huge pressure from commodity prices particularly rising food prices which worsen inflationary expectations in this country, its core inflation which excludes administered prices and volatile foods has been relatively stable below 4 % on average.       Read more of this post

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