Inflation in Indonesia May Exceed One Percent in June and Peak in July
Indonesia's inflation rate is expected to exceed one percent in June 2013 as a result of the increase in price of subsidized fuel that was implemented last week. Throughout Indonesian society, prices have been revised upward to cover for the increased fuel costs. These first round effects may still be felt in July, when inflation is expected to peak at two percent as the fasting month (Ramadhan) and the new school season will start. Second round effects may continue for another five months.
Statistics Indonesia (Badan Pusat Statistik, abbreviated BPS), a non-departmental government institution, will release the official inflation figure of June next week. The inflation rate of Southeast Asia's largest economy has accumulated to 2.30 percent in the period January-May 2013. Indonesia's government and central bank (Bank Indonesia) expect inflation to rise to 7.2 percent in 2013.
Inflation Growth Indonesia:
| Month | 2013 |
| January | 1.03% |
| February | 0.75% |
| March | 0.63% |
| April | -0.10% |
| May | -0.03% |
| Total | 2.30% |
Source: Statistics Indonesia
| 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | |
| Inflation (annual percent change) |
9.8 | 4.8 | 5.1 | 5.4 | 4.3 | 7.2¹ |
¹ Indonesian government forecast
Source: World Bank