July's inflation rate was stable at 3.32%, still within Bank Indonesia's target range. Core inflation fell from 3.25% to 3.18%. The decline in core inflation was mainly influenced by reduced general inflation volatility due to seasonal patterns; not a reflection of aggregate demand. In the midst of increasing global uncertainty, low and controlled domestic inflation provides room for BI to continue easing which has started in June. In the real sector, weak export and investment performance has become the biggest challenge to GDP performance this year. GDP in Quarter-II 2019 showed a growth rate of 5,05% (yoy), after a growth rate of 5,07% (yoy) in Quarter-I.

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