Consumer Price Index: For the 3rd Consecutive Month Indonesia Experiences Deflation
Remarkably, the consumer price index of Indonesia showed deflation for the third consecutive month. Based on the latest data from the Statistical Office of Indonesia (Badan Pusat Statistik, or BPS), deflation was recorded at 0.18 percent month-on-month (m/m) in July 2024.
Deflation in July 2024 was in stark contrast to the 0.21 percent (m/m) inflation rate recorded in the same month one year earlier, and so annual headline inflation eased to 2.13 percent year-on-year (y/y) in July 2024 (which is the lowest annual inflation rate for Indonesia since February 2022). Therefore, inflation should not be a concern for Indonesia’s central bank (Bank Indonesia), which set its outlook for Indonesian inflation in the range of 1.5–3.5 percent (y/y) for full-2024.
Just like in the past two months, food prices are pushing the overall index down. In July 2024 prices of red onions, chili pepper, tomatoes, chicken meat, garlic, fresh fish, chicken eggs, and oranges all contracted (among others) amid ample supplies while demand stayed at the same level as in the previous month. The only exception is rice which again showed rising prices in July 2024 as supplies have decreased compared to April-May 2024 when the big harvest took place.
[...]
This is the introduction of the article. The full article is available in our July 2024 report. For information about buying this report (an electronic report, PDF) -or to subscribe for a longer period- you can contact 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!
