Jakarta. The five consecutive months of deflation since May have had a positive impact on the national economy by increasing the purchasing power of lower- and middle-income families, Finance Minister Sri Mulyani Indrawati said on Friday.

The decline in living costs, driven primarily by falling food prices, has been a key contributor to this trend, she explained.

"It's very encouraging that lower food prices were the main factor behind the deflation. This can enhance people’s purchasing power, as food represents the largest portion of spending for lower- and middle-income households," Sri Mulyani said at her office in Jakarta.

She added that when food remains consistently affordable, it significantly reduces the economic burden on low-income families.

Sri Mulyani also highlighted the state budget's provision of subsidies aimed at stabilizing food prices through social assistance programs. These initiatives, including the distribution of free rice, chicken, and eggs to vulnerable populations, are designed to help them "navigate difficult times."

Indonesia’s core inflation, which excludes the volatile food and energy sectors, currently stands at around 2 percent, reflecting the country's sustained economic growth, she added.

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