Indonesia: Inflation stays within the target range in July
August 1, 2019
Consumer prices increased 0.31% over the prior month in July, down from June’s 0.55% uptick, and driven by higher prices for food and clothing.
Inflation was stable at 3.3% in July, remaining within Bank Indonesia’s target range of 3.5% plus or minus 1.0 percentage point, while core inflation dipped from 3.3% to 3.2%. Low oil prices have helped contain price pressures in recent months. Looking ahead, inflation is seeing remaining comfortably within the target range, which could give the Central Bank leeway to continue loosening its stance—providing the rupiah evolves favorably—to support the economy.
Author: Oliver Reynolds, Economist