Relatively Mild Peak in Inflation in Indonesia: 0.93% in July 2014

Also prices of clothing, transportation and telecommunication services contributed to the July 2014 inflation figure as Indonesian consumers traditionally spend more money on food products, clothing and transportation (mudik tradition) in the holy month of Ramadan and Idul Fitri (Lebaran). Therefore, inflation always peaks in this period (the other peak in Indonesian inflation occurs in the December-January period due to Christmas and New Year celebrations).

As such, relatively mild July inflation at 0.93 percent was brought about due to good management of the Indonesian government as it has been monitoring potential shortages of food products and, when necessary, ordered imports (for example rice, sugar, chili and beef).

On a year-on-year basis, inflation eased to 4.53 percent (finally falling within the target range of Indonesia’s central bank). Meanwhile, calendar year inflation (January-July 2014) rose to 2.94 percent.

Later today, Indonesia Investments will publish a more in depth analysis of Indonesia's July 2014 inflation.

Inflation in Indonesia:

Month	Monthly Growth 2013	Monthly Growth 2014
January	1.03%	1.07%
February	0.75%	0.26%
March	0.63%	0.08%
April	-0.10%	-0.02%
May	-0.03%	0.16%
June	1.03%	0.43%
July	3.29%	0.93%
August	1.12%
September	-0.35%
October	0.09%
November	0.12%
December	0.55%
Total	8.38%	2.94%

	Inflation Rate July 2014	Inflation Rate Calender 2014	Inflation Rate year-on-year
General	0.93	2.94	4.53
- Core	0.52	2.40	4.64
- Administered Price	1.32	3.72	6.18
- Volatile	2.00	4.26	2.63