BI Inflation Value In August 2024 Stays Guarded

JAKARTA - Bank Indonesia (BI) revealed that the Inflation of the Consumer Price Index (IHK) in August 2024 will be maintained in the target range of 2.5 percent plus minus 1 percent.

Based on data from the Central Statistics Agency, the IHK in August 2024 recorded deflation of 0.03 percent (mtm), so that on an annual basis it was relatively stable at 2.12 percent (yoy) from the previous month's realization of 2.13 percent (yoy).

Assistant Governor of the Communications Department Erwin Haryono said that this maintained inflation was the result of the consistency of monetary policy and the close synergy of inflation control between Bank Indonesia and the (Central and Regional) government in the Central and Regional Inflation Control Team (TPIP and TPID) through strengthening the National Movement for Food Inflation Control (GNPIP) in various regions.

"In the future, Bank Indonesia believes that inflation will remain under control in the 2.5 percent target range plus minus 1 percent in 2024 and 2025," he explained in his statement, Tuesday, September 3.

Erwin said that core inflation was maintained as reflected in core inflation in August 2024 at 0.20 percent (mtm), slightly higher than inflation in the previous month of 0.18 percent (mtm).

The realization of core inflation was contributed mainly by inflation of powder coffee, gold jewelery, and school costs, along with the continued increase in global commodity prices, especially gold and the start of the new school year, amid inflation expectations that remain within the target.

On an annual basis, core inflation in August 2024 was recorded at 2.02 percent (yoy), an increase from core inflation in the previous month of 1.95 percent (yoy).

The volatile food group continued its deflation as reflected in the volatile food group in August 2024 experiencing deflation of 1.24 percent (mtm), not as deep as the previous month's deflation of 1.92 percent (mtm).

Meanwhile, volatile food group deflations were contributed mainly by shallot commodities, broiler meat, and tomatoes. Meanwhile, the decline in food commodity prices is supported by increased supply in line with the ongoing harvest period of several horticultural commodities.

On an annual basis, volatile food groups experienced inflation of 3.04 percent (yoy), a decrease from inflation in the previous month of 3.63 percent (yoy).

In the future, Erwin said that volatile food inflation is predicted to remain under control, supported by the synergy of TPIP and TPID inflation control through GNPIP in various regions.

Administered prices groups experienced inflation. The administered prices group in August 2024 experienced inflation of 0.23 percent (mtm), an increase from inflation in the previous month of 0.11 percent (mtm).

Erwin said that the administrative price group inflation was contributed, especially by gasoline and machine kretek cigarettes (SKM) in line with the adjustment of non-subsidized fuel prices (BBM) and continued transmission of excise increases in tobacco products.

"An annual basis, administrative price group inflation was recorded at 1.68 percent (yoy), an increase from the previous month's inflation of 1.47 percent (yoy)," he explained.