Indonesia Inflation

Indonesia

Indonesia: Inflation increases in June amid Ramadan festivities

July 1, 2015

Consumer prices increased 0.54% in June over the previous month, which was slightly above the 0.50% rise tallied in May. June’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 prepared food, beverages and tobacco. Price pressures typically increase during the holy month of Ramadan, which began this year in mid-June.

Annual inflation increased from 7.1% in May to 7.3% in June. The reading was the highest in six months but in line with market expectations. Annual average inflation held at 6.1% for the fourth consecutive month. Meanwhile, the core inflation index, which excludes volatile items such as food and administered prices, increased 0.26% over the previous month (May: +0.23% month-on-month). Annual core inflation held steady at 5.0% for the sixth consecutive month.

The Central Bank’s inflation target for 2015 is 3.0%–5.0%. FocusEconomics Consensus Forecast panelists expect that inflation will average 6.5% in 2015, which is down 0.3 percentage points from last month’s forecast. For 2016, panelists see inflation averaging 4.8%.


Author:, Economist

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Indonesia Inflation June 2015

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


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