Indonesia's inflation seen to tick up to 8.7% in October
Inflationary pressures still linger.
According to DBS, the usual string of data is due on Friday. It noted that Indonesia's October CPI data is likely to show inflation having ticked up higher in October.
DBS said we forecast CPI inflation at 8.7% YoY (up from 8.4% in September).
Here's more:
Core inflation is likely to have inched up slightly higher as well. Some inflationary pressures remain as businesses are still adjusting to the recent weakness in the Rupiah.
But bulk of the price adjustment has been frontloaded in August-September and impact from the June fuel price hike has subsided.
Our current projection is pencilling in CPI inflation in the 8-8.5% YoY range for December 2013, which would mean an average of inflation just over 7% for the entire of 2013. This is still in line with the average of the past 10 years.
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