ECONOMIC PULSE - Price Indices, Manufacturing PMI and Monetary Base

• Inflationary pressure intensified at producer level in 2Q18. The Producer Price Index (PPI) inched up to 138.5 from 138.4 (+0.03% Q/Q), boosted by PPI in both Transportation (+2.6% Q/Q) and Mining & Quarrying (+1.15% Q/Q). Agriculture was the only sector that saw deflation (-1.7% Q/Q).
• Inflationary pressures are also evident at wholesale level. Last month, the Wholesale Price Index (WPI) came in at 165.15, up 0.56% from May supported by Non O&G export (+1.10% M/M).
• The headline Consumer Price Index (CPI) rose 0.28% (M/M), driven by Raw Foods (+0.86%), Education, Recreation and Sports (+0.83%) along with Processed Foods, Beverages and Tobaccos (+0.45%). Deflation only occurred in Transportation, Communication & Financial Services (-0.65%).
• Condition in manufacturing sector marginally improved. The Manufacturing PMI rose to 50.5 in July from 50.3. The manufacturing PMI managed to stay above the 50 level which indicate expansion.
• Liquidity in the economy stabilized in June with M2 reached IDR 5,534 trillion or increased 5.9% (Y/Y), a tad lower than that of May (6.0% Y/Y).

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