
Chilli price drives Indonesia's monthly inflation

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Indonesia's monthly inflation doubled to 0.28% in May, driven primarily by volatile food prices, especially red chilli peppers due to seasonal demand for sambal. Year-on-year inflation stood at 3.08%, exceeding the central bank's 2.5% target. While the economy grew 5.61% in Q1 2026, the rupiah hit an all-time low against the dollar amid global tensions and seasonal currency demands.
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