Indonesia Inflation


Inflation unchanged in June

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.


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Indonesia Inflation Chart

Indonesia Inflation June 2012

Note: Annual and monthly variation of consumer price index in %.
Source: Statistics Indonesia (BPS) and FocusEconomics calculations.

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