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Inflation soars more than expected, driven by food prices
Consumer prices in Indonesia rose 4.35 percent year-on-year (yoy) in June, marking a significant acceleration from the 3.55 percent rate reported for the preceding month.
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A seller displays onions, shallots and garlic at Mandonga Market in Kendari, Southeast Sulawesi, on June 27, 2022. Amid low supplies, the prices of those commodities have risen fast. (Antara/Jojon)
D
omestic inflation has risen faster than expected by either the government or Bank Indonesia (BI), setting a new record since June 2017 as food and transportation prices soar.
Statistics Indonesia (BPS) announced on Friday that the consumer price index (CPI) increased by 4.35 percent year-on-year (yoy) in June, marking a significant acceleration from the 3.55 percent rate reported for the preceding month.
On a month-to-month (mtm) basis, inflation also increased, rising to 0.61 percent in June from 0.4 percent in May, which is still lower, however, than the 0.95 percent seen in April.
At 4.35 percent, the headline inflation figure in June exceeds what the central bank had thought would be the peak of inflation this year, namely 4.2 percent.
Economists at state-owned Bank Mandiri had expected June's inflation to be 4.26 percent yoy.
"This is the highest inflation since June 2017, when our inflation was 4.37 percent yoy," BPS head Margo Yuwono said in a virtual press conference on Friday.
