Continuing the trend since the beginning of 2020, the general inflation rate (YoY) in June decreased again, namely by 0,66 bps – to 2,19%. This figure is the lowest in the last year. This condition is worth paying attention to, especially when considering the month of May, which is the month of Ramadan. Just like the previous month, we estimate that the implementation of the PSBB policy is the main factor causing this month's low inflation figures. The high unemployment rate as a result of the implementation of the PSBB has contributed to a decline in people's income levels, and in turn, has also weakened people's purchasing power. This is reflected in the weakening of core inflation to only 2,65%. Apart from that, the increasing deflation of food commodities also reduced the general inflation rate in May.

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