Indonesia: Inflation increases in May ahead of Ramadan festivities
June 1, 2015
Consumer prices increased 0.50% in May over the previous month, which was greater than the 0.36% rise tallied in April. May’s reading was driven by higher prices in all categories. Foodstuffs registered the largest price increase in May compared to the previous month, followed by prepared food, beverages and tobacco. Price pressures typically increase before the holy month of Ramadan, which begins this year in mid-June.
Annual inflation increased from 6.8% in April to 7.1% in May. The reading was the highest in five months and just above market expectations of a 7.0% increase. Annual average inflation held at 6.1% for the third consecutive month. 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 held steady at 5.0% for the fifth consecutive month.
Author: Carl Kelly, Economist