Indonesia’s National Statistics Agency (BPS) will release May CPI data on 1 June. Headline inflation is expected to have picked up to 0.5% m/m (7.1% y/y) in May from 0.4% m/m (6.8% y/y) in April, and core inflation to have remained unchanged from April at 5.0% y/y. Inflationary pressure was likely due to food inflation, Indonesian rupiah weakness (which increases production costs for industries that use imported capital goods and inputs) and, to lesser extent, the fuel price hikes in late March. “We forecast 3.7% inflation at end-2015 (annual average rate: 6.5%)”,said Standard Chartered in a report on Friday.
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