Also prices of clothing, transportation and telecommunication services contributed to the July 2014 inflation figure as Indonesian consumers traditionally spend more money on food products, clothing and transportation (mudik tradition) in the holy month of Ramadan and Idul Fitri (Lebaran). Therefore, inflation always peaks in this period (the other peak in Indonesian inflation occurs in the December-January period due to Christmas and New Year celebrations).

As such, relatively mild July inflation at 0.93 percent was brought about due to good management of the Indonesian government as it has been monitoring potential shortages of food products and, when necessary, ordered imports (for example rice, sugar, chili and beef).

On a year-on-year basis, inflation eased to 4.53 percent (finally falling within the target range of Indonesia’s central bank). Meanwhile, calendar year inflation (January-July 2014) rose to 2.94 percent.

Later today, Indonesia Investments will publish a more in depth analysis of Indonesia's July 2014 inflation.

 
Inflation in Indonesia:

Month  Monthly Growth
          2013
 Monthly Growth
          2014
January          1.03%          1.07%
February          0.75%          0.26%
March          0.63%          0.08%
April         -0.10%         -0.02%
May         -0.03%          0.16%
June          1.03%          0.43%
July          3.29%          0.93%
August          1.12%  
September         -0.35%  
October          0.09%  
November          0.12%  
December          0.55%  
Total          8.38%          2.94%

 

     Inflation Rate
      July 2014
   Inflation Rate
  Calender 2014
  Inflation Rate
  year-on-year
General            0.93            2.94           4.53
- Core            0.52            2.40           4.64
- Administered Price            1.32            3.72           6.18
- Volatile            2.00            4.26           2.63

 

    2008   2009   2010   2011   2012   2013
Inflation
(annual percent change)
   9.8    4.8    5.1    5.4    4.3    8.4

Source: Statistics Indonesia

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