Bank Indonesia Values Inflation In November 2023 Stays Under Control

Illustration-(Photo: DOK ANTARA)

JAKARTA - The Central Statistics Agency (BPS) recorded that the Consumer Price Index (IHK) inflation in November 2023 was 0.38 percent million to million (mtm) or 2.86 percent year on year (yoy). However, Bank Indonesia (BI) assesses that inflation is maintained in the BI 2023 inflation target range which is 3.0 percent plus minus 1 percent, and maintained inflation is the result of cooperation between fiscal and monetary authorities. Executive Director, Head of the BI Communication Department Erwin Haryono said that maintained inflation is the result of the consistency of monetary policy and the close synergy of inflation control. "Bank Indonesia and the Government (Central and Regional) are working together in the Central and Regional Inflation Control Team (TPIP and TPID) through strengthening the National Movement for Food Inflation Control (GNPIP) in various regions," he explained in his official statement, Sunday, December 3. With these developments, Bank Indonesia believes inflation will remain under control in the target range of 3.0 percent plus minus 1 percent in 2023 and 2.5 percent plus minus 1 percent in 2024. Erwin said that core inflation was maintained low, where core inflation in November 2023 was recorded at 0.12 percent (mtm), an increase from inflation in the previous month of 0.08 percent (mtm). Meanwhile, the realization of core inflation in November 2023 was contributed mainly by the gold jewelery and sugar commodity inflation. On an annual basis, core inflation in November 2023 was recorded at 1.87 percent (yoy), lower than inflation in the previous month of 1.91 percent (yoy). Furthermore, volatile food group inflation in November 2023 recorded inflation of 1.72 percent (mtm), higher than inflation in the previous month of 0.21 percent (mtm). Erwin said the increase in volatile food inflation was contributed mainly by inflation in various commodities of chili, onions, and rice. The increase in inflation is further restrained by deflation of broiler meat and various fish. On an annual basis, volatile food groups experienced inflation of 7.59 percent (yoy), an increase compared to inflation in the previous month of 5.54 percent (yoy). Then, the administrative price group inflation in November 2023 experienced inflation of 0.08 percent (mtm), lower than inflation in the previous month which was 0.46 percent (mtm).

According to Erwin, this development was influenced by gasoline deflation due to non-subsidized fuel oil (BBM) price adjustments. On an annual basis, the administrative price group inflation was 2.07 percent (yoy), a decrease from the previous month's inflation of 2.12 percent (yoy).