- Inflation rose to 3.08% YoY (0.28% MoM) in May-26, driven by low-base effect of volatile food prices and non-subsidized energy products.
- Ex-gold core inflation has accelerated, indicating a broad-based, gradual price acceleration which could affect credit growth (value-wise).
- Rupiah's sharp depreciation and the ongoing war in the Middle East risks increasing inflation further, likely prolonging BI's hawkish stance.
