Indonesia: Inflation falls to lowest level since May 2000 in June
July 1, 2020
Consumer prices increased a seasonally-adjusted 0.18% in June over the last month, accelerating from May's 0.07% increase. June's figure was driven by higher prices for food, drinks and tobacco, and transportation.
Inflation came in at 2.0% in June, down from May’s 2.2% print. June's result represented the lowest inflation rate since May 2000. In addition, the trend pointed down mildly, with annual average inflation coming in at 2.7% in June (May: 2.8%). Lastly, core inflation fell to 2.3% from May’s 2.7%.
Our panelists see inflation tracking in the lower part of the Central Bank’s 2.0%—4.0% target range this year. Low inflation, coupled with a weak economy, could provide the rationale for further monetary easing by the Bank.