Indonesia records inflation of 0.39% in May 2017

Photo BPS

JAKARTA (TheInsiderStories)- Indonesia recorded Consumer Price Index (CPI) of 0.39 percent month to month (mtm) in May 2017, driven by the rising of staple food prices ahead of the fasting month or Ramadhan.

Data from Central Bureau of Statistics (BPS) show that all of expense component contributes for the inflation in May 2017. Inflation of staple foods become main contributor of inflation in May. Inflation of staple foods reached 0.89 percent and contributes inflation of 0.17 percent.

The inflation year to date (ytd) was recorded at 1.67 percent while inflation year on year (yoy) in the month reached 4.33 percent or lower than the same period last year,  which reached 7.15 percent, BPS data show.

Head of BPS Kecuk Suhariyanto said, the ICP or inflation in May was relatively stable although it was higher than previous month. Based on the agency’s monitoring, CPI was recorded in 70 cities while 12 cities experienced deflation.

Previously, the government predicted that inflation in May 2017 would be in a range between 0.2 to 0.25 percent (mtm), while Bank Indonesia expected the May inflation in range of 0.3-0.4 percent (mtm). Both said the inflation in May 2017 will be stable, manageable, and should be still on the target with the government’s full year projection of 4 percent plus minus 1 percent.