Indonesia: Inflation holds at 7-month high in July
August 3, 2015
Consumer prices increased 0.93% in July over the previous month, which was above the 0.54% rise tallied in June. July’s reading was driven by higher prices in all categories. Foodstuffs registered the largest price increase in June, compared to the previous month, followed by transport, communication and financial services. Price pressures for food and transport typically increase during this time of the year amid Ramadan and Lebaran festivities.
Annual inflation in July held at June’s 7.3%. The reading slightly overshot market expectations of a 7.1% result. Annual average inflation increased from 6.1% to 6.3%. Meanwhile, the core inflation index, which excludes volatile items such as food and administered prices, increased 0.34% over the previous month (June: +0.26% month-on-month). Annual core inflation decreased from 5.0% in June to 4.9% in July.
Author: Carl Kelly, Economist