The National Agency of Statistics on Wednesday announced that the inflation steeply dropped by 1.96 percent in June on the yearly basis compared with 2.19 percent in May.
The core inflation, exempting administered prices and volatile prices, slipped 2.26 percent in June on the yearly basis from 2.65 percent in May, the agency's head Kecuk Suhariyanto noted.
However, on the monthly basis, the inflation ticked up 0.18 percent in June from 0.07 percent in May, Suhariyanto added.
The official pointed out that the virus pandemic had changed the pattern of the monthly inflation in June following the Islamic festivity which fell in May.
"In the previous years, the peak of the inflation took place during the Islamic fasting month which was ended with the festivity. But the pattern did not happen this year," said Suhariyanto.
Demands of goods and fashion products usually leap when the world's largest Muslim country, Indonesia, celebrates the Eid al-Fitr festivity.
Indonesia first reported the COVID-19 cases in March, followed by the implementation of partial lockdowns along with physical distancing policy, halting public mobility and household spending.
In April the annual inflation slowed to 2.67 percent from 2.96 percent in March, according to data from the agency.
Due to the low inflation, the central bank, Bank Indonesia, was expected to make a further loosening stride.
Heading to a new normal scenario, Indonesia has gradually reopened the economy and restored activities in the tourism sector under tight health protocols.
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