July Inflation May Indicate Sluggishness

Kompas/Totok Wijayanto

A customer shops at a retail shopping center in Tebet, South Jakarta, on Thursday (27/7). Based on data from the Indonesian Retailers Association, retail spending growth in June only increased by 5-6 percent, or only a tenth of last year’s growth of 11.75 percent in June. The need to spend on school tuition and other education costs during June is one of the causes underlying the declining interest in buying goods.

JAKARTA, KOMPAS – Indonesia’s inflation remained under control in July this year as a result of price stability. However, amid the uncertainties of the global economy, the low inflation could be an indication of sluggishness in the national economy.

The inflation target, an important economic indicator, was set at 4 percent in the 2017 State Budget. It was later raised to 4.3 percent in the 2017 Revised State Budget.