Indonesia: Inflation loses traction in June – UOB

Pablo Piovano FXStreet

Economist at UOB Group Enrico Tanuwidjaja and Haris Handy assess the latest inflation figures in the Indonesian economy.

Key Quotes

“Indonesia’s annual inflation rate slowed to 1.33% y/y in June 2021 vis-à-vis 1.68% in the previous month, according to the data released by National Statistics Bureau. This also marked as the 10-month low inflation rate since August 2020, and still below the central bank’s target range of 2.0% - 4.0%. On month-on-month basis, Indonesia experienced deflation of 0.16%.”

“We expect the recovery of the headline inflation could take longer than anticipated due to the resurgence of domestic COVID-19 cases… As a result, the government is set to enforce stricter restrictions in a bid to halt a rapid rise in coronavirus spread; which in turn will hit at the consumer confidence and consumption demand.”

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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