A second, more prolonged trend driving the evolution of inflation are increasing annual changes in the INPC core component since the second half of last year. Among other factors, this tendency has reflected some pass-through from the depreciated Mexican peso vs. the U.S. dollar, as well as significant processed food price increases.
The dominant use of cash is a consequence of risk and rupiah management costs. Statistics show that each year the amount of currency in circulation grows by around 15%, far exceeding population growth at around 2–3% and GDP growth of around 5–6%.