JAKARTA, July 1 (Xinhua) -- Indonesia posted a 2.51 percent annual inflation rate in June, down from the previous month's 2.84 percent, but still within the central bank's target range of 1.5 percent to 3.5 percent, Statistics Indonesia (BPS) said on Monday.
"The annual inflation rate in June 2024 was 2.51 percent, reflecting an increase in the consumer price index from 103.68 in June 2023 to 106.28 in June 2024," said BPS Acting Chief Secretary Imam Machdi at a press conference.
Core inflation remained steady at 1.90 percent, with the consumer price index rising from 102.25 in June 2023 to 104.19 in June 2024.
Price increases in food, beverages and tobacco contributed 4.95 percent to the inflation rate, driven by global commodity price hikes and uncertain weather conditions.
Ajib Hamdani, an economic policy analyst at the Indonesian Employers Association, noted that the inflation slowdown is in contrast to the June annual trend, where inflation typically rises amid demand-boosting school holidays.
This inflation slowdown reflects the lingering weakness in purchasing power and the persistent high prices in rupiah terms, which need to be addressed promptly, he said.
To manage inflation and maintain economic stability, the central bank has raised the benchmark interest rate by 275 basis points to 6.25 percent since August 2022. However, it remains vigilant against import inflation due to the weakening rupiah against the dollar. ■
