Wrong indentation when editing Yaml in Vim

Question

Vim does not seem to correctly react at a dash symbol in YAML files therefore breaking the format.

For example I have a block which should look like this:

Answer 1

Here's the augroup I have for yaml:

augroup filetype_yaml
    autocmd!
    autocmd BufNewFile,BufReadPost *.{yaml,yml} set filetype=yaml foldmethod=indent
    autocmd FileType yaml |
        setlocal shiftwidth=2 |
        setlocal softtabstop=2 |
        setlocal tabstop=2
augroup END