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

MACROECONOMIC ANALYSIS SERIES: Monthly Inflation, July 2021

Inflation in June was recorded at 1,33 percent year-on-year, weaker than the previous month with inflation of 1,68 percent. The weakening of inflation in this period was driven by weakening in the government-regulated price component and volatile goods prices, although core inflation experienced a slight strengthening. Inflation in the price component regulated by the government was recorded at 0,49 percent, shrinking compared to the previous month with inflation of 0,93 percent. Inflation in the volatile goods price component also experienced a slowdown from 3,66 percent in May 2021 to 1,60 percent in June 2021. In contrast, core inflation experienced a slight strengthening from 1,37 percent in May 2021 to 1,49 percent in June 2021. However, the strengthening of core inflation was not strong enough to increase general inflation in this period year on year.

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