Indonesia Inflation June 2020

Indonesia

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.

FocusEconomics panelists project inflation of 2.6% in 2020, down 0.1 percentage points from last month’s forecast. In 2021, inflation is seen averaging 3.0%.


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Indonesia Inflation June 20 20

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


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