Indonesia’s January 2021 Inflation Slows to 1.55% due to Weak Domestic Demand and Inclement Weather

Indonesia’s annual inflation has slowed down for the first time in five months to 1.55% in January 2021, the lowest it has been for three months, due to inclement weather and weak domestic demand, as reported by local media.

According to Statistics Indonesia, locally known as Badan Pusat Statistik (BPS), Indonesia’s annual consumer price index (CPI) increased by 1.55% in January 2021 from the same month a year earlier, compared to an increase of 1.68% in December 2020 and a 1.59% increase in November 2020. Indonesia’s inflation in January 2021 falls below Bank Indonesia’s 2021 inflation target of 2-4%, as reported by local media, and marks the first slowdown in annual inflation witnessed since August 2020, according to BPS data.

On a monthly b...