Indonesia's Inflation Slows for Four Consecutive Months to July 2024

According to a report by the Central Bureau of Statistics (BPS), Indonesia's inflation rate has slowed for four consecutive months since April 2024.

By July 2024, the annual inflation rate stood at 2.13% (year-on-year/yoy), the lowest in the past two years, as shown in the graph.

Commodities that significantly contributed to inflation or the annual price increase in July 2024 were rice, red chilies, cayenne peppers, scallions, potatoes, instant coffee, granulated sugar, cooking oil, hand-rolled kretek cigarettes (SKT), machine-rolled kretek cigarettes (SKM), and machine-rolled white cigarettes (SPM).

The annual inflation rate in July 2024 was also influenced by price increases in house rent, house contracts, domestic helper wages, cars, gasoline, rice with side dishes, oily cookies, tuition fees, and gold jewelry.

Meanwhile, commodities that contributed to deflation or a year-on-year price decrease in July 2024 were broiler chicken, chicken eggs, fresh fish, tomatoes, shallots, pears, household fuel, liquid/dish soap, and mobile phones.

By expenditure group, in July 2024, the highest annual inflation occurred in the personal care and other services group.

Information, communication, and financial services were the only expenditure group to experience deflation or a year-on-year price decrease.

Here's a breakdown of Indonesia's annual inflation rate in July 2024 by expenditure group:

* Personal care and other services: 5.59% (yoy)
* Food, beverages, and tobacco: 3.66% (yoy)
* Food and beverage services/restaurants: 2.28% (yoy)
* Education: 1.90% (yoy)
* Health: 1.77% (yoy)
* Recreation, sports, and culture: 1.49% (yoy)
* Transportation: 1.22% (yoy)
* Clothing and footwear: 0.99% (yoy)
* Household equipment, tools, and routine maintenance: 1.05% (yoy)
* Housing, water, electricity, and household fuel: 0.50% (yoy)
* Information, communication, and financial services: -0.16% (yoy)