Indonesian Consumers Remain Optimistic as Economic Conditions Improve

Consumer optimism in economic conditions remains solid.

IDXChannel - Consumer optimism in economic conditions remains solid, according to the latest Consumer Survey conducted by Bank Indonesia (BI) in June 2023,  This is reflected by a Consumer Confidence Index (CCI) maintained in the optimistic zone with a reading above 100 at a level of 127.1.

"Consumer optimism in June 2023 was maintained in line with a persistently strong Current Economic Condition Index (CECI) and Consumer Expectation Index (CEI)," BI Communication Department Executive Director Erwin Haryono said in a media release on Monday (10/7/2023)

"The CECI was supported by a stable Current Income Index, while a higher Income Expectation Index contributed to the solid CEI reading," he added.

Meanwhile, inflation continued falling in June 2023, thus returning to the 3.0%±1% target corridor quicker than previously projected. 

According to data published by the Central Statistics Agency (BPS), the Consumer Price Index (CPI) recorded 0.14% (mtm) inflation in June 2023, bringing CPI inflation annually down to 3.52% (yoy) from 4.00% (yoy) the month earlier. 

Headline inflation returned to the target given monetary policy consistency and close synergy to control inflation between BIand the central and regional government in the National and Regional Inflation Control Teams (TPIP and TPID) through the National Movement for Food Inflation Control (GNPIP) in various regions. 

Moving forward, the central bank is confident that inflation will remain manageable in the 3.0%±1% target corridor for the remainder of 2023. (WHY)