Updated
Updated · VOI English · Aug 3
Indonesia Posts 0.14% July Deflation as CPI Slips to 111.73
Updated
Updated · VOI English · Aug 3

Indonesia Posts 0.14% July Deflation as CPI Slips to 111.73

1 articles · Updated · VOI English · Aug 3

Summary

  • Indonesia’s consumer prices fell 0.14% in July from June, with the CPI easing to 111.73 from 111.89, statistics agency BPS said.
  • A 0.89% drop in food, beverages and tobacco drove the monthly deflation, led by cheaper shallots, red chili, peas, eggs, tomatoes and oranges.
  • Gold jewelry prices fell 3.58%, pushing personal care and other services into 0.89% deflation, while transportation also posted a 0.52% monthly decline.
  • Gasoline still added 0.08 percentage point to inflation, showing some transport costs rose even as the overall group and headline CPI fell.
  • On a yearly basis, inflation stood at 2.88% in July and 1.65% year to date, with food, transportation and personal care remaining the main drivers.

Insights

Why did Indonesia's living costs drop in July while a plunging Rupiah threatened to make imported goods drastically more expensive?
Global gold prices are soaring, so what caused Indonesia's local jewelry market to suddenly plunge during a deflationary month?