Economist at UOB Group Enrico Tanuwidjaja reviews the latest inflation figures in Indonesia.

Key Takeaways

“May’s headline inflation jumped to 3.6% y/y in May vs 3.5% in Apr, while core inflation stayed the course at 2.6%.”

“Significant increases in cooking oil, meat, egg, fresh fish and red onion, as well as overall transportation prices, especially air transport costs, drove inflation higher in May.”

“Going forward, we expect the headline inflation to continue rising together with core inflation as domestic demand recovers, thus we keep our inflation forecast average of 3.3% in 2022.”