- The domestic consumption trend has shown some slight improvement, driven by lower food prices despite the still-uncertain outlook for disposable income.
- However, the improvement in consumption trends among upper-middle-income households appears to be more limited, as better-off households still face relatively high food prices, while the government focuses its support on the lower segment of the household sector.
- Rather than a quick burst of rate cuts, a stronger Rupiah may be more effective in maintaining the purchasing power of upper-middle-income households.
