BI The Value Of The January 2024 IHK Inflation Is Maintained By Consistency Results Of Monetary Policy And Synergy

Illustration (Photo: Doc. Antara)

JAKARTA - Bank Indonesia (BI) noted that the inflation of the Consumer Price Index (IHK) in January 2024 was maintained in the target range of 2.5 percent plus minus 1 percent.

Based on inflation data from the Central Statistics Agency which has used the Living Cost Survey (SBH) with the new basic year 2022, IHK inflation in January 2024 was recorded at 0.04 percent (mtm), so that on an annual basis it became 2.57 percent (yoy), lower than the IHK inflation in the previous month of 2.61 percent (yoy).

Assistant Governor of the Communications Department Erwin Haryono said that the development of IHK inflation that was maintained was the result of consistency in monetary policy and synergy in controlling inflation between Bank Indonesia and the Government (Center and Region) 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 inflation will remain under control in the 2.5 percent target range plus minus 1 percent in 2024," he explained in an official statement from BI, Friday, February 2, 2024.

Erwin said, in line with this, core inflation was maintained low in January 2024 at 0.20 percent (mtm), although slightly higher than the previous month's inflation of 0.14 percent (mtm).

The realization of core inflation was contributed mainly by gold jewelery commodities, house rental fees, and house contract fees.

On an annual basis, core inflation in January 2024 was recorded at 1.68 percent (yoy), lower than inflation in the previous month of 1.80 percent (yoy).

Then the volatile food group inflation decreased in January 2024, recording inflation of 0.01 percent (mtm), a decrease from inflation in the previous month of 1.42 percent (mtm).

According to Erwin, this development was mainly supported by an increase in the supply of various chili commodities in line with the improvement in production.

The decline in volatile food inflation is further restrained by the inflation of tomatoes, shallots and rice commodities.

On an annual basis, volatile food groups experienced 7.22 percent inflation (yoy), higher than inflation the previous month of 6.73 percent (yoy).

On the other hand, administrative price group inflation recorded deflation in January 2024 of 0.48 percent (mtm), a decrease from inflation in the previous month of 0.39 percent (mtm).

Erwin said that the deflation was influenced by the reduction in air transportation rates after the end of the Christmas and New Year's National Religious Holidays (HBKN), as well as the adjustment of non-subsidized fuel oil prices (BBM).

"An annual basis, administrative price group inflation was recorded at 1.74 percent (yoy), relatively stable compared to inflation in the previous month of 1.72 percent (yoy)," he concluded.