Indonesia Records Lowest Inflation Rate in 20 Years as Purchasing Power Weakens due to COVID-19

Indonesia's Consumer Price Index (CPI) fell to 1.32% in August 2020, the lowest recorded since May 2000, and well below Bank Indonesia's target inflation range of 2-4% for this year, declared Statistics Indonesia, locally known as Badan Pusat Statistik (BPS).

Head of BPS, Suhariyanto noted in a press briefing that the slowed core inflation and even deflation seen in many regional economies as a result of COVID-19's impact on both supply and demand showed that purchasing power has not yet recovered.

Indonesia's core inflation in August 2020 stood at 2.03% whilst administered prices climbed 1.03%. Household consumption, which usually comprises more than half of the country's gross dom...