JAKARTA, Jul 1 (NNN-ANTARA) – Indonesia posted a 2.51 percent annual inflation rate in Jun, down from the previous month’s 2.84 percent, but still within the central bank’s target range of 1.5 percent to 3.5 percent, Statistics Indonesia (BPS) said, today.
“The annual inflation rate in Jun, this year was 2.51 percent, reflecting an increase in the consumer price index from 103.68 in Jun, 2023, to 106.28 in Jun, 2024,” said BPS Acting Chief Secretary, Imam Machdi, at a press conference.
Core inflation remained steady at 1.90 percent, with the consumer price index rising from 102.25 in Jun, 2023, to 104.19 in Jun, this year.
Price increases in food, beverages and tobacco contributed 4.95 percent to the inflation rate, driven by global commodity price hikes and uncertain weather conditions.
Ajib Hamdani, an economic policy analyst, at the Indonesian Employers Association, noted that, the inflation slowdown is in contrast to the Jun annual trend, where inflation typically rises amid demand-boosting school holidays.
This inflation slowdown reflects the lingering weakness in purchasing power and the persistent high prices in rupiah terms, which need to be addressed promptly, he said.
To manage inflation and maintain economic stability, the central bank raised the benchmark interest rate by 275 basis points to 6.25 percent, since Aug, 2022. However, it remains vigilant against import inflation, due to the weakening rupiah against the dollar.– NNN-ANTARA
