In May, consumer prices increased 0.12% over the previous month, contrasting the 0.31% decline observed in April. Prices were higher in all but one category of the CPI basket. In particular, prices in the housing category were up 0.25% month-on-month. On the other hand, food costs declined for a fourth consecutive month (May: -0.28% mom), which helped to mitigate the overall monthly price increase. Owing to the subdued price increase, annual inflation slowed from 6.2% in April to 6.0% in May, coming in a notch above market analyst expectations, which had seen inflation easing to 5.9%. However, annual average inflation continued to rise, increasing from 6.1% in April to 6.3% in May and continuing the upward trend that began in May 2010. Lower food prices and a stronger rupiah have helped to contain inflationary pressures in the economy. Nevertheless, policymakers must closely monitor inflation developments, as food prices are expected to rise from May onwards once the harvest period concludes. With inflation remaining subdued, the Central Bank decided to maintain the benchmark interest rate for a fourth straight month at its most recent meeting held on 9 June. Consequently, interest rates remain at 6.75%.
Inflation eases in May
June 1, 2011
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Indonesia Economic News
October 20, 2016
At its 19–20 October monetary policy meeting, Bank Indonesia decided to cut the BI seven-day Reverse Repo rate (BI seven-day RR rate) from 5.00% to 4.75%.
October 17, 2016
Indonesia’s trade surplus rose in September to a 14-month high as imports deteriorated.
October 12, 2016
Retail sales in August expanded 14.4% over the same month last year, according to Bank Indonesia’s Retail Sales Survey (RSS).
October 3, 2016
In September, consumer prices increased 0.22% from the previous month, which contrasted the 0.02% fall recorded in August.
October 3, 2016
The manufacturing Purchasing Managers’ Index (PMI) rose from 50.4 in August to 50.9 in September, according to a release provided by Nikkei and IHS Markit.