Inflation Continues To Be Pressured, Deputy Minister Of Finance: So That Community Income Is Not Dilute

Deputy Minister of Finance Suahasil Nazara (Photo: Antara)

JAKARTA - Deputy Minister of Finance Suahasil Nazara said that Indonesia's inflation rate which reached 3 percent year on year (yoy) must be maintained in the range of 2.5 percent plus minus 1 percent so that Indonesia's economic stability is maintained because high inflation can undermine people's purchasing power.

"Since last year, we have also seen regional inflation as one of the most important things that we pay close attention to. High inflation has undermined the purchasing power of our people," he explained at the 2024 National Development Planning Conference (Musrenbangnas) at the Jakarta Convention Center, Monday, May 6.

Suahasil emphasized that currently the government is continuing to strive to reduce the inflation rate to below 3 percent so that people's income does not decline.

"We have to try in each of our regions, we can reduce the inflation to a minimum. Currently, Indonesia is around 3.0 percent, we are quite comfortable. However, we want to hope that it can be even lower so that our people's income is not eroded, it does not decrease due to unnecessary price increases," he said.

Previously, the Central Statistics Agency (BPS) noted that inflation in April 2024 was 0.25 percent monthly month on month (MOM), or lower when compared to inflation conditions in March 2024 which amounted to 0.52 percent of the MoM.

Meanwhile, on an annual basis there is inflation of 3.00 percent or year on year (YoY). Meanwhile, inflation on a calendar year (April 2024 to December 2023) reached 1.19 percent year to date (YtD).

Meanwhile, the largest monthly inflation contributor expenditure group in April 2024 was the transportation group with inflation of 0.9 percent, and the contribution of inflation of 0.12 percent.

Meanwhile, the main contributors to inflation from transportation groups are air transportation rates with an inflationary contribution of 0.06 percent, inter-city transportation rates with an inflationary contribution of 0.03 percent, and rail fares with an inflationary contribution of 0.01 percent.

Then, other commodities that also contributed to inflation in April 2024 were shallots with an inflationary share of 0.14 percent, gold jewelery with an inflationary contribution of 0.08 percent, tomatoes with an inflationary contribution of 0.04 percent, and garlic with an inflationary contribution of 0.02 percent.

In addition, there are commodities that contribute deflation. Among others, red chilies with a deflation of 0.14 percent, rice with a deflation of 0.12 percent, and broiler eggs with a deflation of 0.06 percent.