Dips into deflation amid electricity tariff discounts
Inflation turned negative (-0.09% YoY; Jan: 0.76%) missing consensus (0.55%) and falling well below Bank Indonesia's (BI) 1.5% - 3.5% target
- MoM (-0.48%; Jan: -0.76%): deflation persisted for the second straight month.
- Core inflation (2.48% YoY; Jan: 2.36%): expanded to a 20-month high, reflecting stable domestic demand.
Electricity tariff discounts and lower food prices weigh on February inflation
- Housing, water, electricity & other fuel (-12.08%; Jan: -8.75%): contracted sharply following the second month of electricity tariff discount for households using less than 2,200 Volt-Ampere (VA).
- Food, beverage & tobacco (2.25%; Jan: 3.69%): slowed due to lower prices of onions, tomatoes, chillies and eggs.
- Transportation (0.94%; Jan: 0.76%): rose slightly as subsidised fuel prices increased.
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