Indonesia: Inflation decelerates in July from the prior month
Latest reading: Consumer prices rose 2.9% on a year-on-year basis in July, following a 3.3% increase in the prior month and returning within Bank Indonesia’s 1.5–3.5% target range.
Relative to the prior month’s figures, price pressures softened for food, beverages and tobacco in July (+3.0% in annual terms vs +4.7% in June). In contrast, there were more notable price pressures for transport (+5.1% vs +4.6% in June) and recreation and entertainment (+1.6% vs +1.4% in June). Finally, the variations in clothing and footwear plus housing, water, electricity and household fuels were the same as in the prior month (+1.0% and +1.0%, respectively).
Meanwhile, core consumer prices rose 2.8% on a year-on-year basis in July, unchanged from the previous month’s reading.
On a month-on-month basis, consumer prices were down 0.14% in July, following a 0.44% rise in the prior month.