Institute for Economic and Social Research – Faculty of Economics and Business – Universitas Indonesia

MACROECONOMIC ANALYSIS SERIES: BI Board of Governor Meeting, August 2019

Inflation remained stable at 3.32% in July; it remains within BI’s target range. Core inflation decreased from 3.25% to 3.18%. The decline in core inflation is much affected by the upswing of the headline inflation due to the seasonal effect; it should not be misperceived as a reflection of the households’ demand. Amidst rising global uncertainty, a low and stable domestic inflation provides room for BI to continue its easing stance that it started in June. In the real sector, subdued export and investment performance have been the biggest challenge to the GDP performance this year. GDP in Q2 2019 saw a 5.05% (yoy) growth rate, after a 5.07% (yoy) growth rate in Q1.

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