Indonesia Inflation June 2016

Indonesia

Indonesia: Inflation increases in June

July 1, 2016

In June, consumer prices increased 0.66% over the previous month, which was higher than the 0.24% increase recorded in May and marked the highest reading in almost a year. June’s reading came on the back of price increases in every product category, with foodstuffs leading the way with the largest increase.

Inflation was 3.5% in June. The print was above the 3.3% recorded in May, which had marked the lowest reading since November 2009. The reading came in just above the 3.4% market analysts had expected. Meanwhile, annual average inflation fell from 5.2% in May to 4.9% in June. Core consumer prices, which exclude volatile items such as food and administered prices, increased 0.33% over the previous month (May: +0.23% month-on-month). Core inflation edged up slightly from May’s 3.4% to 3.5% in June.

The Central Bank’s inflation target for 2016 is 3.0%–5.0%. FocusEconomics Consensus Forecast panelists expect that inflation will average 4.2% in 2016, which is down 0.2 percentage points from last month’s forecast. For 2017, panelists see inflation averaging 4.7%.


Author:, Economist

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Indonesia Inflation June 2016 0

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


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