Enrico Tanuwidjaja and Haris Handy, economists at the UOB Group, examine the latest inflation data in the Indonesian economy.
“According to data issued by the National Statistics Bureau, Indonesia’s annual inflation rate fell to 1.33 percent y/y in June 2021, down from 1.68 percent the previous month. This was also the lowest inflation rate in ten months since August 2020, and it remains within the central bank’s goal range of 2.0 percent to 4.0 percent. Indonesia recorded a 0.16 percent deflation month over month “”Recent.”
“Due to the revival of domestic COVID-19 cases, we believe the recovery of headline inflation will take longer than expected… As a result, the government is preparing to impose harsher limitations in order to stem the spread of the coronavirus, which will erode consumer trust and demand.”/n
