In April 2013, Indonesia's inflation rate eased 0.10 percent month-on-month, or 5.57 percent year-on-year. According to Statistics Indonesia (Badan Pusat Statistik, abbreviated BPS) April's deflation was triggered by easing food and clothes prices. Food items that became cheaper last month included garlic, chili, and chicken meat. Particularly rice contributed to the country's deflation as the harvesting season in Indonesia has set in. Core inflation is 4.12 percent (YoY).
The month April usually shows high volatility in terms of inflation figures in recent years:
In calender year 2013, inflation has accumulated to 2.32 percent between January and April:
Indonesia's core inflation is still within the target range of the Central Bank (Bank Indonesia) that is set at 4.5 percent ± 1 percent. On 14 May, Bank Indonesia will hold its monetary meeting. The government will increase the price of subsidized fuel in June. This step will have impact on the country's inflation rate. Currently, Bank Indonesia's benchmark interest rate stands at 5.75 percent.