- Inflation decreased again in Nov-24 to 1.55% YoY and 0.3% MoM. Inflation was mostly driven by volatile food prices ex-rice.
- Climate change seems to cause periodic price spikes for tropical crops. While this could improve Indonesia’s terms of trade, it poses significant challenges to inflation.
- The government's fiscal needs may or may not lead to higher inflation next year depending on the policy choices.
- A weaker Rupiah due to Trump tariffs may exert inflationary pressure, albeit offset by ample and cheap Chinese imports.
