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Inflation cools more than expected in May
CPI growth dropped to 2.8 percent yoy in May, a tad lower than expected by analysts from Moody’s Analytics, who had projected a rate of 2.9 percent.
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People queue to buy basic necessities at a market intervention event held by the government in Surabaya to maintain stable food supplies and prices, in March 2024. (AFP/Juni Kriswanto)
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nflation eased in May as price pressures on food and transportation moderated compared to the previous month, following the end of the seasonal Idul Fitri effect.
Consumer price index (CPI) growth was recorded at 2.8 percent year-on-year (yoy) in May, slowing from 3 percent booked in the preceding month, according to Statistics Indonesia (BPS) data published Monday.
The figure came in a tad lower than expected by Moody’s Analytics, which had projected an annual inflation rate of 2.9 percent.
The reading remains well within Bank Indonesia’s target range of between 1.5 and 3.5 percent for this year.
“This was the lowest inflation rate since February 2024,” Josua Pardede, chief economist at private lender Bank Permata, commented in a statement on Monday.
Read also: Inflation eases but rate cut deemed unlikely for now
Food remained the main driver of CPI growth in May, with consumer prices in the volatile food category up 8.14 percent yoy.
