Indonesia’s annual inflation rate climbed to 3.34% in June, accelerating from 3.08% in May and exceeding median market forecasts.
The uptick marks a notable broadening of price pressures across the archipelago, driven largely by persistent increases in staple food costs.
4 million metric tons of rice by late June, yet market prices continue to climb, suggesting distribution bottlenecks or speculative hoarding are undermining supply-side buffers.
Rice prices have risen for the sixth consecutive month, a trend that defies the presence of record-high state reserves.
The state logistics agency Bulog reported holding 5.4 million metric tons of rice by late June, yet market prices continue to climb, suggesting distribution bottlenecks or speculative hoarding are undermining supply-side buffers.
The divergence in pricing power is evident at the retail level.
Channel NewsAsia reports that while some businesses are making the "hard choice" to raise prices on essentials like meals and services, others are absorbing the cost increases to maintain customer loyalty.