Indonesia's Inflation Rate Drops in June

CPI Disaggregated into Core and Volatile Components

According to the latest data from the Central Bureau of Statistics, Indonesia's Consumer Price Index (CPI) inflation rate has decreased to 2.51% in June 2024 from 2.84% in May.

Core Inflation Remains Persistent

The core inflation rate, which excludes volatile components such as food and energy prices, has remained persistent at 3.14%. This indicates that underlying inflationary pressures are still present in the economy.

Volatile Components Show Mixed Trends

Volatile components, including food and energy prices, have shown mixed trends. Inflationary pressures have eased in the food sector, with the food inflation rate declining to 5.12% from 6.27% in the previous month.

However, the energy inflation rate has increased to 3.98% from 3.56% due to higher fuel prices. This increase has contributed to the overall inflation rate.