Source: Cnbcindonesia.com | 01 Jul 2020

Since the beginning of June 2020, Indonesia has begun to gradually reopen the faucet of community activity which has been locked for months due to the Coronavirus Disease-2019 / Covid-19 pandemic. As a result, the demand started to increase.

This is reflected in the inflation data. The Central Statistics Agency (BPS) announced inflation in June 2020 was at 0.18% on a monthly basis (month-to-month / MtM). This brings year-on-year (YoY) inflation to 1.96% and calendar year inflation to 1.09%. Meanwhile, core inflation was at 0.02% MtM and 2.26% YoY.

This realization is higher than the market consensus compiled by CNBC Indonesia which estimates monthly inflation of 0.025%. Meanwhile, annual inflation stood at 1.805% and annual core inflation at 2.42%.

“The inflation pattern is somewhat different from previous years, due to the extraordinary conditions caused by the Covid-19 pandemic. During Ramadhan and Idul Fitri, inflation was fairly flat but after that it increased slightly, ”said Suhariyanto, Head of BPS.

The acceleration of the inflation rate indicates that the economy is starting to grow. Demand began to creep up so that the price hike responded.

During Ramadan-Eid al-Fitr, which is usually the peak of inflation with high public consumption, inflation is actually very low. This is because Large-Scale Social Restrictions (PSBB) are being intensely promoted. No homecoming, Eid #dirumahaja.