Key facts
- Indonesia's annual inflation rate accelerated to 3.34% in June.
- This is an increase from 3.08% in May.
- The June inflation rate surpassed market expectations of 3.2%.
Indonesia's annual inflation rate increased to 3.34% in June, up from 3.08% in May, exceeding market expectations. The figure remains within Bank Indonesia's target range of 1.5% to 3.5%.
The acceleration in inflation, while still within the central bank's target, could influence future monetary policy decisions by Bank Indonesia, potentially impacting borrowing costs and economic growth.
Indonesia's annual inflation rate accelerated to 3.34% in June, an increase from 3.08% in the previous month, according to data released on Wednesday. This figure surpassed the median forecast of 3.20% in a Reuters poll and moved closer to the upper limit of Bank Indonesia's target range of 1.5% to 3.5%. On a monthly basis, consumer prices rose by 0.44%, accelerating from a 0.28% increase in May and exceeding forecasts of a 0.3% gain. This marked the strongest monthly inflation reading since February. The statistics bureau is scheduled to release June core inflation and May trade data later on Wednesday.
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