Indonesia's Inflation Throughout 2023 Is 2.61 Percent, BI: Still Maintained Within Range
JAKARTA - Bank Indonesia noted that in December 2023, Consumer Price Index (CPI) inflation was maintained within the target range of 3.0 plus or minus 1 percent.
Based on data from the Central Statistics Agency (BPS), CPI inflation in December 2023 was recorded as low at 0.41 percent (mtm) so that 2023 CPI inflation was 2.61 percent (yoy).
Head of the Communications Department of Bank Indonesia (BI) Erwin Haryono said that inflation in 2023 was lower than inflation in 2022 which was recorded at 5.51 percent (yoy).
"Inflation that is maintained within its target range is the result of consistent monetary policy and close synergy in controlling inflation between Bank Indonesia and the Government (Central and Regional) in the Central and Regional Inflation Control Teams (TPIP and TPID) through strengthening the National Food Inflation Control Movement (GNPIP) in various regions," he explained in his official statement, quoted Thursday, January 4.
Erwin said that going forward, Bank Indonesia believes inflation will remain under control within the target range of 2.5 plus or minus 1 percent in 2024.
Meanwhile, on an annual basis, 2023 CPI inflation has returned to the target range, supported by the maintenance of various inflation components.
Erwin said that 2023 core inflation will be maintained at a low level of 1.80 percent (yoy), in line with the consistency of interest rate policy and the stabilization of the Rupiah exchange rate by Bank Indonesia. Likewise, volatile food inflation was also relatively controlled at 6.73 percent (yoy).
This is supported by the close synergy in controlling inflation between Bank Indonesia and TPIP and TPID through GNPIP in various regions in controlling food prices, including rice and other strategic food commodities, from the impact of El Nino.
Inflation in the administered prices group was recorded at 1.72 percent (yoy), in line with the minimum commodity price adjustment policy regulated by the Government.
According to Erwin, low monthly CPI inflation in December 2023 was influenced by controlled core inflation and volatile food inflation.
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Core inflation was recorded at 0.14 percent (mtm), not much different compared to the previous month's inflation of 0.12 percent (mtm), mainly contributed by gold, jewelry, sugar and recreation commodities.
Meanwhile, inflation in the volatile food group decreased from 1.72 percent (mtm) in November 2023 to 1.42 percent (mtm), supported by improved supply in production center areas.
Meanwhile, the administered prices group recorded inflation of 0.39 percent (mtm), an increase from the previous month's inflation of 0.08 percent (mtm), influenced by seasonal factors, the increase in air transport inflation during the Christmas and New Year (Nataru) holidays and the impact of increases various cigarettes due to the increase in tobacco excise rates.