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Inflation at seven-year high, exceeding BI’s revised outlook
Inflation in July surpassed already-revised estimates by Bank Indonesia (BI) and the government as consumer prices rose at their fastest pace since October 2015.
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A vegetable seller (left) serves a customer at Gintung Market in Bandar Lampung, Lampung, on June 16, 2022. The province saw prices of staple foods including shallots, chilies and eggs increase fast ahead of Idul Adha, the Islamic Day of Sacrifice. (Antara/Ardiansyah)
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nflation has surpassed already-revised estimates by Bank Indonesia (BI) and the government as consumer prices rise at their fastest pace since October 2015.
Statistics Indonesia (BPS) reported on Monday that the consumer price index (CPI) increased by 4.94 percent year-on-year (yoy) in July as inflation accelerated significantly from 4.35 percent measured in the preceding month.
On a month-to-month (mtm) basis, consumer prices rose 0.64 percent, higher than the 0.6 percent logged in June and 0.4 percent in May, but still below the 0.95 percent monthly increase seen in April.
At 4.94 percent, the annual inflation figure for July exceeds even a second upward revision by the central bank for this year, which expected inflation to reach a peak between 4.5 and 4.6 percent, as well as the government’s full-year projection of 3.5 to 4.5 percent.
Economists at state-owned Bank Mandiri and at Moody’s Analytics had expected July’s inflation to be 4.6 percent yoy and 4.8 percent yoy, respectively.
“This is the highest inflation since October 2015, when inflation was 6.25 percent yoy,” BPS head Margo Yuwono said during a press conference in Jakarta.
Read also: Inflation soars more than expected, driven by higher food prices
