Indonesia’s headline CPI was unchanged at 3.0% YoY in March. Core CPI was higher at 2.9% (Feb 2020: 2.8%).
CPI performance for the month reflected the higher food prices. However, this was offset by lower transport prices due to falling energy prices and decline in airfares.
Going forward, we forecast inflation to moderate to 2.0% in 2020. The indication for price development in the near term looks towards the downside, as domestic demand softens following the COVID-19 pandemic.
On behalf of Ahmad Nazmi Idrus - RHB Sekuritas
Link to report: https://bit.ly/2xBR6U3
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