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Inflation slows in May as food prices fall
With inflation sits well within the central bank target, it could open room for further monetary easing to support economy recovery, though it will likely remain cautious amid risks from global uncertainties.
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Merchants and buyers pack the Tanah Abang Skybridge that connects the railway station to the famous Tanah Abang textile market in Central Jakarta. Indonesian economic growth slowed in the second quarter despite the increase in household spending ahead of Idul Fitri in June this year. (The Jakarta Post/Dhoni Setiawan)
Inflation slowed in May as prices of key food items declined, easing pressure on consumers amid persistent weak sentiment.
Consumer price index (CPI) growth fell 0.37 percent month-to-month (mtm) in May, marking the deepest monthly deflation since September 2022, according to Statistics Indonesia (BPS) data published on Monday.
It was also the third monthly deflation recorded in 2025, following declines in January and February.
“The food, beverage and tobacco group contributed the most to May 2025’s deflation,” Pudji Ismartini, undersecretary of distribution and services at BPS, briefed the press on the same day of the data release.
Read also: Coffee, gold push up inflation to 1.95 percent in April
The drop was driven largely by horticultural products such as red chilli peppers, cayenne pepper and shallots, with broader declines also seen in chicken, garlic and fresh fish, she added.
Tomatoes, however, continued an upward price trend, adding slight inflationary pressure.
