INDONESIA: INFLATION UP AS FUEL SUBSIDY REDUCTION IMPACTS

JAKARTA – ANZ Bank says  key trade (May), inflation and PMI (June) data released by Indonesia this morning show an economy in the initial stages of a policy-generated inflation shock, with further policy tightening expected to ensure inflation expectations remain well-anchored. Headline inflation climbed to 5.90% y/y in June as the first surge from the fuel subsidy reduction came through. Core inflation was flat at 3.98% y/y.