Trade Minister Zulkifli Hasan visits a traditional market in Koja, North Jakarta, in June 2022 to check on the availability and prices of cooking oil. - Courtesy of Trade Ministry
JAKARTA (Bloomberg): Indonesia’s inflation is poised to return within the central bank’s target as early as this month, in what economists see as a positive surprise for policymakers who had seen that outcome as possible only by August.
Headline inflation will likely hit the 2%-4% range in May or June, according to economists’ projections after the release of April consumer price data on Tuesday (May 2). That will give Bank Indonesia the room to keep holding the key rate steady at 5.75%, or even consider altering course to a cut, if needed.
Consumer prices rose 4.33% last month, its slowest pace in nearly a year, as an ample harvest offset the seasonal uptick in prices driven by Eid al-Fitr celebrations. Volatile inflation eased to a 13-month low, thanks to food security measures like distributing chili seeds, funding rice drying machines and bazaars for in-demand staples.
