KSSK Optimistic Inflation 2023 Will Remain Controlled

Minister of Finance Sri Mulyani (Photo; Doc. Antara)

JAKARTA - The Financial System Stability Committee (KSSK) is optimistic that inflation will remain under control in the range of 3 percent by 2023. Although, in the midst of the global economy which is full of challenges and dynamics on the global financial market.

Minister of Finance Sri Mulyani Indrawati said that the Inflation of the Consumer Price Index (IHK) in October 2023 was recorded as low at only 2.56 percent yoy supported by maintained core inflation and administrative prices, amid the increase in volatile food group inflation as a result of rising rice prices.

"The maintained inflation is a tangible result of the consistency of monetary policy to ensure inflation remains within the target range," he said at a press conference, Friday, November 3.

However, Sri Mulyani conveyed the government's policy as a shock absorber of global turmoil, as well as the close synergy of inflation control between Bank Indonesia and the Government (Center and Region) in the Central and Regional Inflation Control Team (TPIP and TPID) through strengthening the National Movement for Food Inflation Control (GNPIP) in various regions.

Sri Mulyani said that in the future, the mix of monetary policies and synergies with the Government (Center and Regions) will continue to be strengthened in order to anticipate various risks of inflationary pressure.

In 2024, Sri Mulyani believes that inflation will remain under control in the range of 3 percent plus minus 1 percent in 2023 and 2.5 percent plus minus 1 percent in 2024.

Previously, the Central Statistics Agency (BPS) recorded inflation in October 2023 at 0.17 percent (mtm), bringing it on an annual basis to 2.56 percent (yoy), with the Consumer Price Index (IHK) at 115.64.

Meanwhile, core inflation remained low in October 2023, reaching 0.08 percent (mtm), lower than the previous month of 0.12 percent (mtm). This decline was caused by inflation in gold jewelery commodities and housing rental costs.

On an annual basis, core inflation in October 2023 reached 1.91 percent (yoy), lower than the previous month of 2 percent (yoy).

Inflation in volatile food groups has also decreased. In October 2023, volatile food group inflation was 0.21 percent (mtm), lower than the previous month which reached 0.37 percent (mtm).

Meanwhile, the decline in inflation in volatile food groups was caused by deflation in broiler eggs, various types of onions, and cooking oil, in line with sufficient supply.