Indonesia experiences lowest inflation in two decades

Indonesia recorded the lowest inflation in 20 years in May as the COVID-19 pandemic led to depressed demands.

08, Jun. 2020

Image by rbrudolph from Pixabay
Image by rbrudolph from Pixabay

JAKARTA, VNA - Indonesia recorded the lowest inflation in 20 years in May as the COVID-19 pandemic led to depressed demands.

According to the National Agency of Statistics (BPS), the nation’s CPI increased by 0.07 percent. The inflation in May drifted down 2.19 percent annualized from 2.67 percent in the preceding month.

BPS head Kecuk Suhariyanto said that the uncertainty surrounding the economy has made the inflation level very unusual and much lower than in previous years, as demand usually spikes during the Idul Fitri holiday.

May’s figure marks the lowest Idul Fitri inflation level in the country’s 74-year history, as during the Muslim holiday people usually participate in exodus, family gatherings and mass shopping sprees that boost demand.

This year, the government banned exodus and several regions nationwide implemented large-scale social restrictions to contain the COVID-19 outbreak, leaving millions of people out of work. The virus had infected at least 30,500 people, with 1,800 deaths, as of June 6, according to official data, since the government announced the first two confirmed cases in early March. - VNA