Economists: Indonesia's inflation may rise in the short term

```htmlJinse Finance reported that on July 2, Kenanga economists stated in a report that Indonesia’s inflation is expected to rise in the short term. They explained that increases in food and transportation costs, coupled with the ongoing weakness of the Indonesian rupiah, could keep price pressures elevated, although inflation is expected to remain within Bank Indonesia’s target range of 1.5%-3.5%. Kenanga maintained its forecast for Indonesia’s 2026 inflation at 3.1%, higher than 1.9% in 2025, but indicated that if the exchange rate continues to face pressure, risks will tilt upward. The institution added that Bank Indonesia is expected to maintain a defensive policy stance and may raise interest rates by another 25 basis points to support the rupiah and curb inflation.```