Indonesia: Inflation holds steady again in May
June 2, 2014
Consumer prices increased 0.16% over the previous month in May, which contrasted the 0.02% decrease tallied in April. May’s modest increase was driven by higher prices in most categories of the index, including prepared food, beverages and tobacco as well as health services. Prices for foodstuffs decreased again on impacts from the harvesting season.
Annual inflation came in at 7.3% for the third consecutive month in May. The reading was in line with market expectations and still represented the lowest reading since June 2013. Annual average inflation rose slightly from 7.4% in April to 7.6% in May. Meanwhile, the core inflation index, which excludes volatile items such as food and administered prices, increased 0.23% over the previous month (April: +0.24% month-on-month). Annual core inflation inched up from 4.7% in April to 4.8% in May.
Author: Carl Kelly, Economist