As expected, Indonesia posted very mild inflation in August 2021 amid the country’s (continued) social and business restrictions (PPKM) that disrupt demand across the economic centers on Java and Bali.
Based on the latest data released by Indonesia’s Statistical Agency (in Indonesian: Badan Pusat Statistik, BPS), inflation was recorded at 0.03 percent month-on-month (m/m) in August 2021 as demand remains low across Indonesian society. However, it is certainly also true that inflationary pressures are typically low in Indonesia in the August-October period (which is visible in the table above), particularly due to the lack of inflationary pressures on food products.
But what is interesting is that core inflation, which excludes food and energy (items that are much more sensitive to prices changes), was strong at 0.21 percent (y/y) in August 2021, and up from 0.05 percent (m/m) in the preceding month, actually suggesting that Indonesians’ purchasing power is not too weak.
The full article is available in the August 2021 edition of our monthly report. This report can be ordered by sending an email to firstname.lastname@example.org or a message to +62.882.9875.1125 (including WhatsApp).