The government expects inflation to be around 7.2 percent in 2013. However, various analysts expect that the real outcome will add one more percentage point on top of that number. In June, annual inflation reached 5.90 percent. July's inflation rate will depend a lot on the supply of food products. If supply is sufficient, inflation may be kept down to 1.5 percent. Although the Ramadan is a fasting month, in the evening and early morning people will usually gather and eat at organized parties. This results in higher demand for food products during that month. On average, the Ramadan triggers 1.0 percent inflation. This year, the Ramadan will start on (or around) 9 July 2013. Indonesia's central bank (Bank Indonesia) is expected to raise its key interest rate next week from the current 6.0 percent.

2013    Inflation
January      1.03%
February      0.75%
March      0.63%
April     -0.10%
May     -0.03%
June      1.03%
Total      3.35%
    2008   2009   2010   2011   2012   2013
(annual percent change)
   9.8    4.8    5.1    5.4    4.3    3.5¹

¹ year to date
Source: Statistics Indonesia