Indonesia: Inflation pressures from Oil and festivals – DBS

DBS Group Research expects Indonesia’s March CPI inflation to stay firm at 4% year-on-year, slightly below February’s 4.8%, but with a faster monthly pace. Analysts highlight the impact of higher energy prices and festive demand, as well as base effects. DBS Group Research expects Indonesia’s March CPI inflation to stay firm at 4% year-on-year, slightly below February’s 4.8%… DBS Group Research expects Indonesia’s March CPI inflation to stay firm at 4% year-on-year, slightly below February’s 4.8%, but with a faster monthly pace. Analysts highlight the impact of higher energy prices and festive demand, as well as base effects. DBS Group Research expects Indonesia’s March CPI inflation to stay firm at 4% year-on-year, slightly below February’s 4.8%, but with a faster monthly pace. Analysts highlight the impact of higher energy prices and festive demand, as well as base effects. Policy options include holding retail fuel prices via budget savings, though prolonged conflict could force price hikes or subsidy cuts.CPI seen firm on energy and holidays"March inflation is expected to… For traders, releases like this can quickly shift rate expectations, currency direction, index futures and broad risk sentiment. Watch the next move in the dollar, front-end yields and index futures to see whether the market prices this release as a true surprise or only a passing headline.