The National Statistics Agency (BPS) will announce May CPI data on Monday, 1 June. The headline inflation is estimated to accelerate 0.5% m/m (7.1% y/y) in May from 0.4% m/m (6.8% y/y) in April, while core inflation stayed at 5.0% y/y (in line with April). Inflationary pressures in May came from price increases in food items, a weakening Indonesian rupiah (which increased production costs for industries using imported capital goods and input), and to a lesser extent, from the impact of fuel price hikes in late March. “We project that inflation reached 3.7% y/y by end-2015, or an annual average of 6.5%”,said Standard Chartered in a report on Thursday.
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