April Inflation Maintained, BI Is Optimistic That In The Future It Will Stay Under Control

Rupiah (photo: dock. Antara)

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

Assistant Governor of the Communication Department of Bank Indonesia (BI) Erwin Haryono said that based on data from the Central Statistics Agency, inflation in IHK April 2024 was recorded at 0.25 percent (mtm), bringing it to 3.00 percent (yoy) on an annual basis.

"The maintained inflation is the result of the consistency of monetary policy and the tight synergy of inflation control between Bank Indonesia and the Government (Center and Regions) 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 statement, Friday, May 3.

Erwin said that in the future, Bank Indonesia believes inflation will remain under control in the 2.5 percent target range plus minus 1 percent by 2024.

In addition, core inflation is maintained. Core inflation in April 2024 was recorded at 0.29 percent (mtm), higher than inflation in the previous month of 0.23 percent (mtm) in line with the increase in seasonal demand during the Eid Al-Fitr National Religious Holiday (HBKN) period, and was driven by an increase in global commodity prices, especially gold commodities.

Meanwhile, the core inflation deal was contributed mainly by the inflation of gold jewelery, cooking oil and sugar commodities. On an annual basis, core inflation in April 2024 was recorded at 1.82 percent (yoy), an increase from inflation the previous month of 1.77 percent (yoy).

The volatile food group recorded deflation. The volatile food group in April 2024 experienced deflation of 0.31 percent (mtm), lower than the previous month which experienced inflation of 2.16 percent (mtm).

According to Erwin, the deflation of the volatile food group was contributed mainly by various commodities of red chilies, rice, broiler eggs, and cayenne pepper. The decline in food commodity prices is mainly influenced by the ongoing harvest season, especially the various commodities of chilies and rice.

"Further deflation is restrained by the inflation of shallot, tomatoes and garlic commodities. On an annual basis, volatile food groups experienced inflation of 9.63 percent (yoy), a decrease from inflation the previous month of 10.33 percent (yoy)," he explained.

Erwin said that in the future, volatile food inflation is predicted to decline again as the harvest season continues, and is supported by the synergy of controlling TPIP and TPID inflation through GNPIP in various regions, thus supporting efforts to stabilize food prices.

In addition, the inflation of administrative prices has increased. The administered prices group in April 2024 experienced inflation of 0.62 percent (mtm), an increase from the previous month of 0.08 percent (mtm).

According to Erwin, the development was mainly influenced by inflation of air transportation rates, intercity transportation, and machine kretek cigarettes (SKM), along with increased mobility during the Eid al-Fitr holiday, and continued transmission of excise tax on tobacco products.

"Annually, the administrative price group inflation was 1.54 percent (yoy), an increase from the previous month's inflation of 1.39 percent (yoy)," he said.