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Indonesia inflation drops to almost below 3 percent
Maintaining the ongoing trend, Indonesia managed to bring headline inflation down again in July, getting closer to the below-3 percent target every month since this year’s peak in February.
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A man transports vegetables bought at a wholesale market on his motorbike in Jakarta on April 13, 2022. (AFP/Bay Ismoyo)
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ndonesia saw inflation continue to drop in July, moving even closer to dropping below 3 percent, the lower bound of the central bank’s target.
The country’s annual consumer price index (CPI) growth slowed to its six-month low of 3.08 percent, according to Statistics Indonesia (BPS). That figure was much lower than Moody’s Analytics prediction of 3.3 percent.
“Annual inflation has consistently dropped since March 2023,” Pudji Ismartini, BPS’ undersecretary for services and distribution statistics, said in a press briefing on Tuesday.
The recent figure drops from June’s 3.52 percent, which marked the first time inflation had dipped below 4 percent since May 2022.
Bank Indonesia (BI) has set this year’s inflation target at 3 plus-minus 1 percent, with the country’s July inflation inching toward the lowest range. Next year, BI projects inflation could be much lower at 2.5 plus-minus 1 percent range.
Transportation remained the biggest inflation contributor last month, as prices in this expenditure group were up 9.58 percent year-on-year (yoy).
Meanwhile, gasoline, rice and cigarettes were among the commodities that contributed the most to the annual inflation figure.
