Economy / Indonesia
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Macroeconomic Forecast Indonesia
December 2005 | Macroeconomic ForecastsSorry, you must be a subscriber to view this article in full. If you are a subscriber please login.
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Inflation has emerged as the key risk to economic stability. Price pressures have arisen mainly as a consequence of fuel price increases, which have had an effect on both the intensity of consumer price growth, but have also been especially persistent – a sign that affirms the strength of second-round inflationary effects. This effect has been compounded by high global oil prices and rupiah weakness, which have both caused higher local prices through the import-price channel. We anticipate that average annual inflation will be 10.2% – close to its current level. This agrees precisely with the consensus