The still high prices of food and clothing during and after the Eid period mean that inflation remains at a higher level than previously estimated. These two types of goods contributed the most to general inflation (see Table 1), which was mainly caused by increased consumption of food and clothing needs around the Idul Fitri period. Additionally, core inflation increased again, from 3,12% in May to 3,25% in June, which provides a strong indication that the consumption growth trend seen in Quarter-I continued in Quarter-II. Until now, we still maintain our inflation outlook in the range of 3.4-3.6% at the end of 2019, in
where the potential for increased inflation in the second half is very likely to come from increased domestic consumption and weakening of the Rupiah exchange rate due to increased global economic instability.

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