Indonesia's Monthly Inflation Rate Was 0.03% in August 2021

The Central Statistics Agency (BPS) recorded Indonesia's inflation rate at 0.03% month-on-month (mom) in August 2021, with a consumer price index (CPI) of 106.57. This inflation rate decreased from 0.08% in July 2021 but remained higher than the previous year, which experienced a 0.5% deflation.

Last month's inflation was driven by several expenditure groups. Education recorded the highest inflation at 1.2%, due to the start of the new school year and the resulting flow of school fees.

The next highest inflation contributors were health at 0.32% and household furnishings, equipment, and routine maintenance at 0.27%. Other expenditure groups experiencing inflation included personal care and other services (0.15%), food and beverage (0.1%), and housing, water, electricity, and household fuel (0.5%).

Meanwhile, the expenditure group experiencing the highest deflation was food, beverages, and tobacco at 0.32%. Deflation was also experienced by the recreation, sports, and culture group and the clothing and footwear group, each at 0.07%. Transportation experienced 0.05% deflation, and information, communication, and financial services experienced 0.01% deflation.

The annual inflation rate in August 2021 was recorded at 1.59%. The year-to-date inflation rate reached 0.84% last month.