July Inflation Eases Off After Aidil Fitri Festivities

Economic Research	2 August 2017
Indonesia
Economic Update
July Inflation Eases Off After Aidil Fitri Festivities Headline inflation eased to 3.9% YoY in July (+4.4% in June), attributed mainly to slower increases in the price of almost all products & services after the Aidil Fitri festivities. For the full year, we forecast headline inflation to pick up to +4.2% in 2017, from +3.5% last year, on account of:       i.        Higher energy prices in 1H17 as a result of elevated crude oil prices;      ii.        Electricity tariff hikes;     iii.        Modest pick-up in volatile food prices.            Economist:  Rizki Fajar| +6221 2970 7065