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Statistics Indonesia: Annual inflation in June hits 4.35%, highest in past 5 years

Tempo - July 1, 2022

Bisnis.Com, Jakarta – Statistics Indonesia or BPS reported that the country's annual inflation rate reached 4.35 percent in June, while the monthly inflation rate was 0.61 percent.

"The 4.35 percent annual inflation rate is the highest in five years since 2017, which was at 4.37 percent," said BPS Head Margo Yuwono on Friday, July 1, 2022.

Meanwhile, the year-to-date inflation in 2022 reached 3.19 percent. Food, beverages, and tobacco were the biggest contributors to annual inflation up to 0.47 percent with inflation of 1.77 percent.

Margo added that commodities that became the biggest contributors to inflation were cooking oil, red chilies, and kretek or clove cigarettes. For red chili, BPS noted that the price spike contributed to annual inflation, which increased by 0.35 percent.

"This is because of the weather that red chili and cayenne pepper contribute quite a lot to inflation," he explained.

The annual inflation rate in June exceeded Bank Indonesia's (BI) prediction. BI previously projected the rate at 4.2 percent year on year as of June. It was also above the central bank's range target of 2-4 percent.

However, BI emphasized that core inflation and inflation expectations could still be under control within the range of 3 percent (plus or minus 1 percentage point).

Source: https://en.tempo.co/read/1607524/statistics-indonesia-annual-inflation-in-june-hits-4-35-highest-in-past-5-year