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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
INDONESIA
Indonesia’s May CPI rose a slightly less than expected 2.8% y/y after 3.0%. The drop on the month was driven by food and transport prices. Whereas core inflation rose 1.9% y/y up from 1.8%, highest since September 2023, due to higher rents and gold/jewellery and sugar prices. Inflation remains well within Bank Indonesia’s (BI) 1.5-3.5% target band but the central bank remains alert to the impact of the weaker currency on import prices.
Indonesia CPI y/y%
Source: MNI - Market News/Refinitiv
- Volatile food prices moderated to 8.1% y/y from 10.3% in April due to lower rice and chicken inflation. Administered prices remained low rising only 1.5% y/y up from 1.4%.
- Import prices were disinflationary from November 2022 until February this year but in March they turned positive rising 0.5% y/y. In the May S&P Global manufacturing PMI respondents reported that cost pressures were higher due to the soft rupiah.
- USDIDR has risen again since mid-May and the pair is up 1.6% since then. It has started this week slightly lower at 16223. With the pair stubbornly elevated BI will continue to monitor inflationary risks closely.
Indonesia import prices y/y% vs JP Morgan NEER
Source: MNI - Market News/Refinitiv
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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