On Monday (02/05) Statistics Indonesia (BPS) released the latest inflation data. The agency stated that the lower fuel prices resulted in a 1.60 percent (m/m) decline in transportation costs in April, while the price of rise (the main staple food for Indonesians) fell 1.2 percent (m/m) due to the harvest season.

Meanwhile, core inflation - which excludes volatile food and administered prices such as subsidized fuel and electricity - eased to 3.41 percent (y/y), from 3.50 percent (y/y) in the preceding month.

In the months ahead inflationary pressures are expected to grow as the Ramadan month (the holy Islamic fasting month) will start in early June. Although this is a month of self-control, consumption on food items (in the early morning or in the evening), clothes, shoes and bags usually increases.

Read more: Heightened Money Circulation due to Ramadan & Idul Fitri

Inflation in Indonesia:

Month  Monthly Growth
          2013
 Monthly Growth
          2014
 Monthly Growth
          2015
 Monthly Growth
          2016
January          1.03%          1.07%         -0.24%          0.51%
February          0.75%          0.26%         -0.36%         -0.09%
March          0.63%          0.08%          0.17%          0.19%
April         -0.10%         -0.02%          0.36%         -0.45%
May         -0.03%          0.16%          0.50%
June          1.03%          0.43%          0.54%
July          3.29%          0.93%          0.93%
August          1.12%          0.47%          0.39%
September         -0.35%          0.27%         -0.05%
October          0.09%          0.47%         -0.08%
November          0.12%          1.50%          0.21%
December          0.55%          2.46%          0.96%
Total          8.38%          8.36%          3.35%

Source: Statistics Indonesia (BPS)

Inflation in Indonesia and Central Bank Target 2008-2015:

   2008  2009  2010  2011  2012  2013  2014  2015
Inflation
(annual percent change)
  9.8   4.8   5.1   5.4   4.3   8.4   8.4   3.4
Bank Indonesia Target
(annual percent change)
  5.0   4.5   5.0   5.0   4.5   4.5   4.5   4.0

Source: Bank Indonesia

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