Indonesia’s annual inflation rate dropped to a 14-month low of 3.52% in June of 2023 from 4% in May, less than the market consensus of 3.64%, with food prices rising the least in 16 months (2.85% vs 4.27% in May). Prices also moderated for transport (10.18% vs 10.62%), accommodation/restaurant (3.27% vs 3.38%), and clothing (1.47% vs 1.54%). Meanwhile, inflation of education was steady (at 2.75%) and that of housing was little changed (2.49% vs 2.48%) while prices of furnishings accelerated (2.57% vs 2.48%). By contrast, prices of information & financials fell further (-0.23% vs -0.27%). The inflation rate stayed within the central bank’s target of 2-4% for a second straight month, after 11 months of being above the target range. Core inflation slowed to a 13-month low of 2.58% from 2.66% in May, below forecasts of 2.6%. On a monthly basis, consumer prices were up 0.14%, following a prior 0.09% rise, which was the least in six months, below market consensus of a 0.24% gain.
