Airlangga Reveals Reasonable Inflation, A Sign Of Economic Growth

JAKARTA - Coordinating Minister for Economic Affairs Airlangga Hartarto that the recent increase in inflation was caused by the Lebaran moment and the revocation of electricity subsidies since March.

"Inflation has indeed increased because it is Eid, and both electricity prices are not subsidized for March and then it will indeed increase," he told the media crew, Friday, May 2.

In addition, he assessed, inflation can also be an indicator of positive economic growth.

"Inflation also shows growth, it's good," he added.

Previously, the Central Statistics Agency (BPS) noted that the consumer price index (IHK) in April 2025 was 1.17 percent on a monthly basis or month to month (mtm), or lower than the previous month which reached 1.65 percent.

Meanwhile, on an annual basis there was also inflation of 1.95 percent year on year (yoy), or an increase compared to the same period in the previous year which reached 1.03 percent (yoy). Meanwhile, on a calendar year or year to date there was an inflation of 1.56 percent.

Deputy for Distribution and Services Statistics at BPS Pudji Ismartini said that the main contributor to monthly inflation in April 2025 was electricity tariffs and gold and jewelry commodities.

The electricity tariff experienced inflation of 26.99 percent, with an inflationary contribution of 0.97 percent.

"Inflation of electricity tariff commodities in April 2025 was due to adjustment of electricity tariffs in postpaid customers which had returned to normal after a 50 percent discount in the previous period. So that the March 2025 bill was paid in April 2025 which again used the normal rate," said Pudji at a press conference, Friday, May 2.

Pudji explained, for gold jewelery commodities, there was an inflation of 10.52 percent, with an inflationary share of 0.16 percent.

According to him, gold jewelery inflation was the highest during the 20 months of consecutive inflation and, the increase in gold inflation was due to an increase in global gold prices.

Pudji said that the annual increase in inflation was mainly driven by food, beverage and tobacco groups with inflation of 2.17 percent with a contribution of 0.64 percent.

Then, personal care and other services with inflation amounted to 9.93 percent and contributed by 0.62 percent.