Indonesia's annual inflation rate likely stayed stubbornly high in June, a Reuters poll showed, as increased consumption during festivities surrounding the Muslim fasting month of Ramadan pushed up prices, and in turn inflation. The poll's median forecast for June from 14 analysts was 4.29 percent on an annual basis, well within the Indonesian central bank's target range for this year. The rate was 4.33 percent in May.
The core inflation rate, which strips out government-controlled and volatile food prices, was seen barely changed at 3.21 percent, compared with May's 3.20 percent. On a monthly basis, the inflation rate is forecast to have increased to 0.61 percent in June, up from 0.39 percent in May.
"As in previous years, the celebration of Eid al-Fitr will have caused a substantial increase in demand for goods and services like groceries, foods, clothing, and transportation services," said Juniman, chief economist at PT Bank Maybank Indonesia Tbk. Muslims in Indonesia celebrated the Eid al-Fitr holidays in June to mark the end of the fasting month.
Comments
Comments are closed.