- Economy: Consensus predicts inflation to slow down in May
Consensus predicts a slowdown in inflation for May 24, which is in line with falling food prices and the momentum toward the end of Ramadan. The New York Times survey estimates that monthly inflation in May 2024 will range from 0.07% to 0.07%. Meanwhile, annual inflation in May is expected to be around 2.94% to 2.98%. (Kontan)
What we think: With the failing food commodity prices and the end of Ramadan, inflation normally will decline in the month after Lebaran. However, inflation may be higher in Jun 24 as the government may hike the subsidized fuel price. - JPFA strengthens downstream business
Japfa Comfeed Indonesia (JPFA) continues to promote export sales, especially in the downstream business segment. Last year, the company exported 1,500 tons of probiotic chicken to Singapore. For this year, the company has prepared to introduce the probiotic fresh chicken product (Olagud) to the domestic market in 2Q24. (Kontan)
What we think: So far in 1Q24, the poultry segment recorded solid revenue growth of 11.87% yoy to IDR 2.06T and remained the third largest contributor to revenue at 9.3%