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Inflation rate drops for first time since February
The headline inflation rate dropped for the first time since February as the consumer price index came in lower than expected in August, data from Statistics Indonesia (BPS) show.
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Low-income residents line up for food aid provided by the local administration and the Indonesian Military (TNI) in the Central Java regency of Tegal on July 26. (Antara/Oky Lukmansyah)
Inflation in Indonesia has slowed for the first time since February, and consumer prices even posted a monthly decline in August.
The consumer price index (CPI) was up 4.69 percent year-on-year in August, down from 4.94 percent in July, and lower than some analysts had expected, according to the Statistics Indonesia (BPS) data presented on Thursday.
The decline in the annual rate was partly due to a rise in prices in the food, beverage and tobacco category in 2021 as the comparison year.
Analysts at state-owned lender Bank Mandiri and at financial research firm Moody's Analytics had forecast headline inflation of 4.79 percent yoy and 5.3 percent yoy, respectively, for August.
On a monthly basis, consumer prices dropped slightly in August, falling 0.21 percent from July, as supply issues within the food production chain abated.
The monthly CPI decline was larger than the 0.12 percent drop forecast by Bank Mandiri and stands in contrast to the 0.64 percent monthly increase seen in July.
