Macro Analysis /

ID : Economic - Feb 2021 inflation and manufacturing PMI

    1 April 2021
    Published byCGS-CIMB

    Higher food inflation and targeted auto sales tax exemption led to wider differences between headline inflation (+1.4%) and core inflation (+1.2%). Upward inflation trajectory from 2Q21F will be partially softened by fiscal measures, i.e. auto sales tax exemption and electricity discount extension. We expect monetary policy to stay neutral with policy rate at 3.7% amid greater fiscal support, currency weakness and controlled price pressure.