In June, consumer prices rose 0.62% over the previous month, which was well above the 0.07% increase tallied in May. The reading mainly reflected higher prices for food as well as clothing. Food price pressures are likely to persist in the short term, as the Muslim fasting month (Ramadan) begins on 20 July and prices for items such as food products as well as clothing will see a seasonal spike. Despite the marked monthly price increase, annual inflation remained unchanged at May's 4.5%, which was above market expectations that had inflation inching down to 4.4%. Annual average inflation remained also unchanged at May's 4.3%. Meanwhile, the core inflation index, which excludes volatile items such as food and administered prices, increased 0.34% over the previous month, driving annual core inflation up to 4.2% in June.
Inflation unchanged in June
July 2, 2012
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Indonesia Inflation Chart
Note: Annual and monthly variation of consumer price index in %.
Source: Statistics Indonesia (BPS) and FocusEconomics calculations.
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
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.
October 3, 2016
In September, consumer prices increased 0.22% from the previous month, which contrasted the 0.02% fall recorded in August.