Indonesia's consumer price inflation experienced a more significant decline than anticipated in May, driven by a slowdown in food prices, according to data released on Monday by the statistics bureau.
The Consumer Price Index (CPI) rose by 2.84% year-over-year in May, down from a 3.0% increase in April. This was below the expected rate of 2.94%.
Additionally, the inflation rate remained within the central bank's target range of 1.5-3.5%.
However, core inflation increased to an eight-month high of 1.93% in May, up from 1.82% in April. Economists had projected a growth rate of 1.88%.
The annual price growth for food items eased to 6.18%, compared to 7.04% in the previous month.
Healthcare costs were 2.06% higher than the previous year, while costs for clothing and footwear rose by 1.10%.
On a month-to-month basis, consumer prices fell slightly by 0.03%, reversing a 0.25% rise in April. Economists had predicted a modest increase of 0.05%.
