Headline inflation in May 2020 was also below the historical average during the holy fasting month of Ramadan and Eid-ul-Fitr festive period for the past five years at 0.69 percent (mtm).
Annually, therefore, CPI inflation in May 2020 stood at 2.19 percent year-on-year (yoy), decreasing from 2.67 percent (yoy) one month earlier.
"Looking forward, Bank Indonesia will consistently maintain price stability and strengthen policy coordination with the central and local governments to control low inflation within the target corridor of 3.0 percent plus minus 1 percent in 2020," the central bank said in a press release on Tuesday, June 2, 2020.
By component, low CPI inflation in May 2020 was influenced by a further decline of core inflation to 0.06 percent (mtm) from 0.17% percent (mtm) in the previous period.
Annually, core inflation stood at 2.65 percent (yoy) in May 2020, down from 2.85 percent (yoy) in April 2020.
"Core inflation has decreased in line with slower demand due to the COVID-19 pandemic, policy consistency by Bank Indonesia to anchor inflation expectations, low international commodity prices and maintained exchange rate stability," the central bank stated.
Volatile Foods (VF) recorded a period of deeper deflation at 0.50 percent (mtm) compared with 0.09% percent (mtm) deflation the month earlier.
Annually, therefore, VF inflation was recorded at 2.52 percent (yoy) in the reporting period, down significantly from 5.04 percent (yoy) one month earlier.
Administered prices (AP) recorded 0.67 percent (mtm) inflation in May 2020 after posting 0.14 percent (mtm) deflation in April 2020.
Nevertheless, AP inflation was below the historical average during national religious holidays (HBKN) period for the past five years at 0.88 percent (mtm).
Annually, administered prices recorded 0.28 percent (yoy) inflation, reversing the 0.09 percent (yoy) deflation recorded one month earlier.