May CPI inflation drops to 2.19%
JAKARTA - Bank Indonesia (BI) recorded that the Consumer Price Index (CPI) inflation in May reached 0.07% month to month (mtm), down from 0.08% mtm in April.
This figure is lower than the inflation pattern during Ramadan and Idulfitri in the last five years which averaged 0.69% mtm.
"With these developments, annual CPI inflation in May 2020 was recorded at 2.19% yoy, down from 2.67% yoy in April," BI Governor Perry Warjiyo said in a video conference broadcast on BI's official YouTube channel on Thursday ( 6/18).
By component, Mr Warjiyo added, core inflation declined due to slowing domestic demand and the central bank's consistency in directing inflation expectations on target. The volatile foods category experienced deflation due to price corrections for several commodities due to slowing demand, adequate supply, and maintained distribution of goods.
Meanwhile, the administered prices group experienced inflation, mainly due to seasonal increases in airfares, train fares, and filter clove cigarettes.
"Going forward, Bank Indonesia will consistently maintainsprice stability and strengthen policy coordination with the government, both at the central and regional levels, to control inflation remains low in its target of 3.0% +/- 1% in 2020 and 2021," Mr Warjiyo concluded. (MS)