High consumption due to the month of Ramadan and the approaching Eid al-Fitr celebrations contributed to high general inflation in April, with the highest contribution coming from the volatile goods and foodstuffs components. On the other hand, energy prices are still under control because the Indonesian Government maintains energy subsidies and compensation as well as social protection, so that people's purchasing power is maintained and core inflation remains relatively low. From the domestic side, Indonesia continues to record positive growth in the first quarter of 2022, supported by maintained domestic consumption, investment recovery and increased exports due to soaring commodity prices. Strong economic performance and surging commodity prices helped manage capital outflows during the Fed's monetary tightening to address inflationary pressures. Conducive economic growth and controlled core inflation provide room for BI to maintain its policy interest rate at 3,50% at the BI Board of Governors meeting this month.

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