Indonesia: Inflation remains steady in May
June 1, 2012
In May, consumer prices rose 0.07% over the previous month, which was less than the 0.21% increase tallied in April. The reading mainly reflected how higher prices for beverages and tobacco as well as for housing were mostly offset by lower prices for food. As a result of the subdued monthly price increase, annual inflation remained unchanged at April's 4.5%, which was below market expectations that had inflation inching up to 4.6%. Annual average inflation, however, edged down from 4.5% in April to 4.3% in May. Meanwhile, the core inflation index, which excludes volatile items such as food and administered prices, increased 0.18% over the previous month, driving annual core inflation down to 4.1% in May. The Central Bank has an inflation target of 4.5% plus/minus 1% for 2012 and 2013.