That was within Bank Indonesia's 2023 inflation target range of 2% to 4%.
A deeper look at the data showed that while headline inflation only rose modestly, annual rice inflation accelerated to 13.76% in August, the highest since June 2012.
Myrdal Gunarto, economist with Maybank Indonesia, said he expected a limited increase in rice prices going forward due to planned imports from Southeast Asian countries, predicting headline inflation would remain manageable.
As for rice inflation, Irman said: "As a staple, the (rice) inflation will affect purchasing power.
But generally, food commodities are showing a moderation trend that is offsetting (rising) rice prices' impact."
Persons:
Rice, Myrdal Gunarto, Irman Faiz, Irman, Stefanno Sulaiman, Gayatri Suroyo, Kanupriya Kapoor
Organizations:
Bank, Maybank, Bank Danamon, Thomson
Locations:
JAKARTA, Indonesia, Maybank Indonesia