Jakarta: The Central Statistics Agency (BPS) has announced that inflation reached 0.68 percent month-to-month (mtm) and 3.32 percent year-on-year (yoy) in May 2019.
"It is still under control. It is still below 3.5 percent," BPS chairman Suhariyanto told a press conference on Monday.
According to the agency, food commodities contributed 2.02 percent to the month's inflation. In the meantime, processed foods, beverages, cigarettes and tobacco contributed 0.56 percent to the month's inflation.
Furthermore, transportation, communication and financial services contributed 0.54 percent to the month's inflation. In addition, clothes contributed 0.45 to the month's inflation.
In April 2019, inflation stood at 0.44 percent mtm and 2.83 percent yoy. Based on data from BPS, it was primarily influenced by spice prices.
Bank Indonesia (BI) decided to hold its 7-Day Reverse Repo Rate at 6.00 percent after a Board of Governors meeting last month. The central bank also decided to maintain the Deposit Facility (DF) and Lending Facility (LF) rates at 5.25 percent and 6.75 percent respectively.
According to the central bank, the decision is consistent with efforts to maintain the external stability of Indonesia’s national economy amidst the re-emergence of global financial market uncertainty.
"Moving forward, BI will remain vigilant of global financial market dynamics and external stability with due consideration to the space available for accommodative monetary policy in line with low inflation and the need to stimulate domestic economic growth," BI said in a press release last month.