In June, consumer prices increased 0.55% over the previous month, above the 0.12% rise tallied in May. Prices were higher in all categories of the CPI basket. In particular, prices in the food category soared 1.27% month-on-month, increasing for the first time since the beginning of the year and mainly reflecting higher rice prices. Food price pressures are likely to persist in the short term, as the Muslim fasting month (Ramadan) begins on 1 August and will see a seasonal spike in prices for items such as food products as well as clothing. Despite the pronounced price increase, annual inflation eased from 6.0% in May to 5.5% in June, coming in a notch above market analyst expectations, which had seen inflation falling to 5.4%. The headline figure benefited from last year's base effect associated with adverse weather conditions, which pushed up food prices. Annual average inflation remained unchanged in June at May's 6.3%. As inflation temporarily eased, the Central Bank left the benchmark interest rate unchanged at 6.75% for a fifth straight month at its meeting held on 12 July. Nevertheless, upside risks to inflation remain, as the Deputy Finance Minister Anny Ratnawati announced on 28 June that the government may limit the volume of fuel subsidies this year, which is beginning to weigh on the government's finances. If implemented, the measure to constrain consumption of subsidized fuel will maintain the budget deficit at 2.1% of GDP but will result in higher inflation. The Central Bank set an inflation target of 5.0% 1% for this year and 4.5% 1% for 2012.
Inflation falls to one-year low
July 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.