Indonesia’s Inflation Trends: Headline Eases, Core Inflation Surges
October Inflation Overview
Indonesia's headline inflation rate eased to 1.71% in October, down from 1.84% in September. This rate aligns closely with analysts' forecast of 1.68% from a recent Reuters poll. It marks the lowest rate since October 2021, signaling some cooling in broader inflation trends.
Rising Core Inflation Reflects Demand Pressures
Despite the overall dip in headline inflation, core inflation—which excludes volatile food and government-regulated prices—jumped to 2.21% in October, up from 2.09% in September. This core inflation rate is the highest recorded since July 2023, defying analysts’ expectations for a stable figure and indicating increased demand pressures.
Bank Indonesia's Policy Outlook
The headline inflation rate remains within Bank Indonesia’s (BI) target range of 1.5% to 3.5%. Although BI lacks a specific target for core inflation, it considers core inflation trends in shaping monetary policy. Following an interest rate cut in September, BI Governor Perry Warjiyo has hinted at the potential for further cuts if inflation remains controlled, with the timing largely influenced by global economic conditions.
Outlook for 2025
BI anticipates maintaining low inflation through 2025. However, the recent rise in core inflation could signal a need for cautious policy adjustments in response to global market dynamics and domestic demand trends.


U.S. Stock Futures Slide as Tech Rout Deepens on Amazon Capex Shock
Bank of Japan Signals Readiness for Near-Term Rate Hike as Inflation Nears Target
South Korea Assures U.S. on Trade Deal Commitments Amid Tariff Concerns
Singapore Budget 2026 Set for Fiscal Prudence as Growth Remains Resilient
Oil Prices Slide on US-Iran Talks, Dollar Strength and Profit-Taking Pressure
Asian Stocks Slip as Tech Rout Deepens, Japan Steadies Ahead of Election
Gold and Silver Prices Slide as Dollar Strength and Easing Tensions Weigh on Metals
South Korea’s Weak Won Struggles as Retail Investors Pour Money Into U.S. Stocks
Australia’s December Trade Surplus Expands but Falls Short of Expectations
Japan Economy Poised for Q4 2025 Growth as Investment and Consumption Hold Firm
Oil Prices Slip as U.S.–Iran Talks Ease Supply Disruption Fears
RBI Holds Repo Rate at 5.25% as India’s Growth Outlook Strengthens After U.S. Trade Deal
U.S.-India Trade Framework Signals Major Shift in Tariffs, Energy, and Supply Chains
Gold Prices Slide Below $5,000 as Strong Dollar and Central Bank Outlook Weigh on Metals
Trump Endorses Japan’s Sanae Takaichi Ahead of Crucial Election Amid Market and China Tensions
Global Markets Slide as AI, Crypto, and Precious Metals Face Heightened Volatility 



