[Economist: Indonesia's Inflation May Rise in the Short Term] According to a report by Golden Finance on July 2, Kenanga economists stated in a report that Indonesia's inflation is expected to rise in the short term. They noted that rising food and transportation costs, coupled with the continued weakening 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 inflation in 2026 at 3.1%, higher than 1.9% in 2025, but believes 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.