Statistics Bureau (BPS) announced Wednesday (Aug 1) that the inflation was recorded at 0.28% month-on-month (m/m) in July 2018, under control. Still, the country’s annual inflation rate accelerated to 3.18% (y/y) in July, from 3.12% in the preceding month.
The inflation peaked in June, caused by the Ramadan and Lebaran period (when consumer demand traditionally rises significantly) is over. Thus, prices of goods have begun to turn normal. But the new school year brings inflationary pressures to Indonesia. Rising fuel prices (specifically the price of Pertamax which was raised per 1 July 2018) also contributed.