Key facts
- Indonesia's CPI inflation reached 3.08% year-on-year in May.
- The May inflation rate exceeded the consensus forecast of 2.97%.
- Food prices were the main driver of the acceleration in inflation.
- Annual inflationary pressures stem from food, personal care, and transport prices.
- Bank Indonesia previously implemented a 50 basis point rate hike.
Indonesia's Consumer Price Index (CPI) inflation accelerated in May, reaching 3.08% on a year-on-year basis, surpassing the consensus forecast of 2.97%. The primary driver behind this increase was attributed to rising food prices. Annually, inflationary pressures are mainly from food, personal care, and transport costs. Bank Indonesia had previously implemented a 50 basis point rate hike, which could help curb inflation. However, further depreciation of the Indonesian rupiah could potentially channel inflation into food prices.