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Jakarta Post

Inflation drops further in July, sustaining downward trend

  • Dzulfiqar Fathur Rahman

    Jakarta

Jakarta   /   Thu, August 6 2020   /  01:00 am
People practice social distancing while buying vegetables amid the coronavirus disease (COVID-19) outbreak in Depok, near Jakarta Indonesia, April 28, 2020. (REUTERS/Ajeng Dinar Ulfiana)

The downward trend in the annual inflation rate continued in July, the lowest since 2000, as the COVID-19 pandemic ravages people’s purchasing power. Statistics Indonesia’s (BPS) consumer price index (CPI) was up by 1.54 percent year-on-year (yoy) in July, below Bank Indonesia’s (BI) target range of between 2 and 4 percent for the year. It was also lower than June’s annual inflation rate of 1.96 percent. Meanwhile, the core annual inflation rate stood at 2.07 percent, as government-administered prices were up 0.70 percent and volatile prices only rose by 0.35 percent yoy. “The core inflation was still weak despite a slight [monthly] increase in July, which suggests that we still have to work hard to boost people’s purchasing power,” BPS head Suhariyanto said in a virtual briefing on Monday. The government gradually restarted economic ...