Fuel Price Adjustment to Drive Inflation in August 2024

JAKARTA — The Central Statistics Agency (BPS) noted that the adjustment of fuel prices in August 2024 also contributed to inflation in the same month.

Deputy for Distribution and Services Statistics of BPS Pudji Ismartini revealed that fuel commodities also contributed to inflation in August 2024, in addition to the education group.

"Gasoline and diesel commodities experienced inflation in August 2024 with inflation rates of 0.66 percent month-to-month (mtm) and 0.43 percent, respectively," he said in a press conference, Monday, September 2.

As is known, the government made adjustments to the increase in fuel prices for the types Pertamax Turbo, Pertamina Green 95, Pertamina Dex, and Dexlite set on August 2, 2024 and effective from August 10, 2024.

According to Pudji, the increase in gasoline prices contributed to inflation with a contribution to general inflation of 0.03 percent.

"In the last three years, the highest inflation of gasoline and diesel commodities occurred in September 2022," he explained.

Although it contributed to inflation, Pudji said that this adjustment had a lower impact on inflation than the price adjustment that occurred in September 2022, where the government adjusted the prices of both subsidized and non-subsidized fuels.

For information, BPS noted a significant spike in inflation in September 2022 of 24.91 percent (mtm) for gasoline and 25.61 percent (mtm) for diesel.

For information, on an annual basis or year on year (yoy) there was inflation in August 2024 of 2.12 percent. This figure is lower when compared to August 2023 of 3.27 percent.

Meanwhile, on a monthly basis or month to month (mom) there was deflation in August 2024 which was recorded at 0.03 percent or lower when compared to June 2024 of 0.18 percent. Meanwhile, inflation in the calendar year or year to date (ytd) was 0.87 percent.