Indonesia’s annual inflation rate accelerated to 4.94% in July 2022 from 4.35% in June, topping market estimates of 4.82%. This was the fastest rise in consumer prices since December 2014, breaching the central bank’s target range of 2 to 4% for the 2nd straight month. Food prices rose the most since December 2014 (9.35% vs 6.23%), with consumption strengthening further following a return to normal life after a lift in curbs and as commodity prices stayed elevated. Additional upward pressures also came from cost of housing (2.57% vs 2.14%), transport (6.65% vs 5.45%), furnishings (4.91% vs 4.77%), food services & restaurant (3.96% vs 3.67%), education (1.85% vs 1.69%) and clothing (1.54% vs 1.38%). Meanwhile, cost of information & financial continued to fall (-0.27% vs -0.23%). The annual core inflation rate was at a 28-month high of 2.86%, compared to consensus of 2.85%. On a monthly basis, consumer prices climbed 0.64% in July, the most in 3 months, surpassing forecasts of 0.53%.
