Lowest Since January 2023, May Inflation Reaches 0.09 Percent

Financial illustration (Photo: Antara)

JAKARTA - The Central Statistics Agency (BPS) recorded inflation in May 2023 at 0.09 percent on a monthly basis (month to month/mtm). This inflation is the lowest since January 2023.

"After Lebaran 2023, the inflation rate has begun to weaken, and is even the lowest since January 2023," said Deputy for Distribution and Services Statistics Pudji Ismartini in the release of the May 2023 Consumer Price Index Development in Jakarta, Monday.

The inflation rate began to decline in May 2023 after Eid al-Fitr or Eid al-Fitr 2023 which fell on April 22, 2023. The main drivers of the decline in inflation rates in May 2023 were transportation groups and clothing and footwear, each of which experienced deflation of 0.56 percent and 0.46 percent on a monthly basis.

In terms of commodities, the main contributor to deflation in May 2023 was the air transportation rate which was recorded at 5.26 percent with a share of 0.06 percent. In addition, the other contributors to deflation were red chilies with a contribution of 0.04 percent, transportation rates between cities 0.02 percent, cayenne pepper 0.02 percent, and spinach 0.00 percent.

Meanwhile, when viewed from an area, BPS noted that there were 13 cities that experienced deflation in May 2023. The city that experienced the deepest deflation was Kupang with a record of 0.79 percent. The main support for the Kupang City deflation is the air transportation tariff commodity with a deflation of 0.85 percent.

Then, Tanjung Pinang City experienced deflation of 0.27 percent, supported by air transportation tariff commodities with deflation of 0.11 percent.

In addition to the two cities, other cities experiencing deflation were Tarakan with 0.20 percent, Manado with 0.22 percent, DKI Jakarta with 0.10 percent, and Jayapura with 0.05 percent.

Based on BPS data, monthly inflation in May 2023 was the lowest since January 2023. In January, inflation was recorded at 0.34 percent, then decreased to 0.16 percent in February. Inflation increased in March to 0.18 and April to 0.33 percent, until finally it fell to 0.09 percent in May.