JAKARTA (XINHUA) – Indonesia reported an annual inflation rate of 2.84 per cent in May, down from the previous month’s 3.0 per cent, yet still within the central bank’s target range of 1.5 to 3.5 per cent, as announced by Statistics Indonesia (BPS) on Monday.
According to Acting Head of BPS Amalia Adininggar Widyasanti, annual inflation was driven by price increases in food, beverages, and tobacco by 6.18 per cent, personal care and other services by 4.99 per cent, and restaurants by 2.51 per cent.
This annual inflation was also influenced by decreases in expenditure groups such as information, communications, and financial services, which fell by 0.16 per cent.
Widyasanti also stated that the country also experienced a monthly deflation of 0.03 per cent in May, marking the first deflation since August 2023.
Since August 2022, Bank Indonesia has increased its benchmark interest rate by 275 basis points to 6.25 per cent in an effort to control inflation and maintain the value of the rupiah.
