The FINANCIAL — Indonesia’s inflation accelerated in June due to higher prices of basic food commodities during the Muslim holy month of Ramadan, the official statistics agency said on July 1, according to Nasdaq.
The consumer-price index rose 7.26% in June from a year ago, compared with 7.15% in May. It rose 0.54% from the previous month, edging up from 0.50% in May.
The median forecast for year-over-year inflation from 11 regional economists polled by The Wall Street Journal was 7.36%, while the median forecast from seven of those economists who made month-over-month predictions was 0.62%.
Agency chief Suryamin said basic food prices rose 1.6% from a month earlier. Commodity sellers typically raise prices during Ramadan to make more profit from the festivities that mark the end of the fasting month, which falls on July 18 this year. Demand for food commodities also increases during the fasting month as Muslims generally to break their fast with a big spread.
Core inflation, which excludes volatile components and prices determined by the government, was steady at 5.04% year- over-year for the fourth straight month.
Indonesia’s inflation might peak in July due to the Ramadan festivities, giving the central bank another reason to maintain its tight monetary stance when it meets later this month.
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