JAKARTA Bank Indonesia (BI) in its official statement said that the November inflation achievement of 5.42 percent year on year (yoy) brings its own hope for achieving the target throughout 2022.
Executive Director of the BI Communication Department Erwin Haryono said last month's score was more gentle than October's 5.71 percent.
"For the whole of 2022, Bank Indonesia views inflation to be lower than the initial forecast even though it is still above the target of 3 percent plus minus 1 percent," he said in an official statement quoted on Friday, December 2.
According to Erwin, the positive development of inflation cannot be separated from the influence of closer policy synergies between the central and regional governments, Bank Indonesia, and various other strategic partners through the Central and Regional Inflation Control Team (TPIP-TPID).
"We also continue to optimize and the National Food Inflation Control Movement (GNPIP) in reducing inflation rates, including controlling the impact of continuing fuel price adjustments," he said.
Erwin added that inflation in 2023 is expected to decline and return to the target of 3 percent plus minus 1 percent.
"The policy synergy between the central and regional governments and Bank Indonesia will continue to be strengthened to ensure inflation returns to its predetermined target immediately," he stressed.
In terms of core inflation, in November it was recorded at 3.30 percent (yoy) or slightly lower than inflation in October which was 3.31 percent.
As for monthly or month to month (mtm), core inflation in November was 0.15 percent, slightly decreased compared to inflation in the previous month of 0.16 percent.
"The controlled core inflation is mainly influenced by the continued impact of limited fuel price adjustments and inflationary pressures in terms of demand that are not yet strong," he said.
"In the future, core inflation is expected to remain under control driven by inflationary control measures to be taken. Bank Indonesia will strengthen its monetary policy response to reduce current high inflation expectations and ensure core inflation returns to its target early, namely to the first half of 2023," Erwin concluded.
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