Indonesia: Inflation moderates in May
Latest reading: Inflation inched down to 1.6% in May, following April’s 1.9% and approaching the floor of the Central Bank’s 1.5–3.5% target range. Looking at the details of the release, price growth for food was the lowest since August 2020, and price pressures for housing and utilities eased from the prior month. That said, transport costs rebounded after April’s drop.
Accordingly, the trend pointed down slightly, with annual average inflation coming in at 1.6% in May (April: 1.7%). Meanwhile, core inflation edged down to 2.4% in May from April’s 2.5%.
Finally, consumer prices dropped 0.37% from the previous month in May, contrasting the 1.17% rise seen in April. May’s result marked the weakest reading since February.