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In contrast to developed economies, inflation in Indonesia remains mild
Annual core inflation was recorded at 1.31 percent in August, slower than a month earlier, despite some relaxation in emergency COVID-19 curbs.
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Continuous fight: A firefighter sprays disinfectant at the Kramat Jati wholesale market in East Jakarta on Monday. Authorities continue to disinfect public places, including traditional markets, to break the chain of COVID-19 transmissions. (JP/P.J.Leo)
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ndonesia saw a further slowdown in core inflation last month as demand remained weak despite some easing in COVID-19 curbs following a decline in daily new confirmed cases.
Core inflation in August stood at 1.31 percent year-on-year (yoy), slower than July’s 1.4 percent annual increase, according to data released by Statistics Indonesia (BPS) on Wednesday.
“The development of core inflation is very important, because it usually serves as an indicator of people’s purchasing power,” Setianto, BPS undersecretary for services and distribution, said during an online press conference on Wednesday.
The overall consumer price index (CPI) posted a 1.59 percent annual increase in August, slightly more than the 1.52 percent logged in July. On a month-to-month (mtm) basis, consumer prices rose a marginal 0.03 percent last month.
Indonesia has continued to see a muted increase in consumer prices, in contrast with some developed economies, such as Germany, which recorded a 13-year-high annual inflation at 3.4 percent in August, news agency Reuters reported on Monday.
Read also: Core inflation slows as emergency curbs hit demand
Tuition fees led the price increases at home, rising 1.20 percent mtm in the month of August, which marked the start of the new academic year. Food, beverages and tobacco kept inflation muted as they posted the steepest decline at 0.32 percent mtm.
