Waspadalah terhadap penipu yang aktif di WA mengatasnamakan Indonesia Investments
6 June 2025 (closed)
Jakarta Composite Index (7,113.42) +44.39 +0.63%
Consumer Price Index of Indonesia – Deflation Returns as Demand for Food Eases
In May 2025 Indonesia experienced steeper deflation that we had expected. Based on the latest data from Indonesia’s Statistical Office (Badan Pusat Statistik, BPS), the deflation rate was recorded at -0.37 percent month-on-month (m/m).
Deflation itself was not a surprise as it is common for prices (particularly of food and to a lesser extent of transportation) to cool after the Ramadan-Idul Fitri peak that occurred in March and April 2025. The deflation in May 2025 therefore reflects the normalization of these prices as demand in society subsided.
It also means that the impact of the 50 percent electricity rate discount in January and February 2025 (offered by state-owned electricity company Perusahaan Listrik Negara, PLN, to customers with an electricity capacity of up to 2,200 VA) has now fully vanished from the data. While it caused heavy deflation in the first two months of the year, it (partly) prompted steep inflation (normalization) in March and April 2025. Meanwhile, Indonesia’s year-on-year (y/y) inflation eased quite significantly to 1.60 percent in May 2025 (from 1.95 percent in the previous month).
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The full article is available in our May 2025 report. Want to order this report? It (an electronic report, PDF, in English) can be ordered by contacting us through email and/or WhatsApp:
- info@indonesia-investments.com
- +62(0)882.9875.1125
Price of this report:
Rp 150,000 (or equivalent in other currencies)
Take a glance inside the report here!
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