Institute for Research on Economics and Society – Faculty of Economics and Business – University of Indonesia

LPEM INFLATION ANALYSIS IN JUNE 2017

July 5

In June 2017, inflation was recorded at 0,69% (mtm) or 2,38% (ytd), an increase compared to May 2017, in accordance with LPEM FEB UI's predictions in the previous analysis. Inflation in June 2017 was caused by the increase in the basic electricity tariff for stage three as well as the fasting and Eid 1438 H period which caused transportation rates to increase. Even though LPEM has predicted relatively low food inflation during the fasting month and Eid since last year considering the harvest pattern of chilies and shallots, appreciation goes to the government for succeeding in reducing disruptions to food supplies.

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