Indonesia’s National Statistics Agency (BPS) will release April CPI data on 4 May. Headline inflation is expected to have picked up slightly to 0.4% m/m (6.8% y/y) from 0.2% m/m (6.4% y/y) in March, and expect core inflation of 5.0% y/y (unchanged from March), in line with market consensus. Despite the harvest season in April,which should have slowed inflation, the first-round effect of subsidised fuel price hikes in late March and Indonesian rupiah (IDR) weakness likely led to strong inflationary pressure. “We expect 3.7% y/y inflation at end-2015”, Said Standard Chartered in a report on Friday.
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