BI Pede Inflation Maintained As Volatile Food Decreases

RDG BI May 2024 (Photo: Aris Nurjani/VOI)

JAKARTA - Bank Indonesia (BI) is optimistic that inflation will be maintained in the target range of 2.5 percent plus minus 1 percent. Reflecting on the Inflation of the April 2024 Consumer Price Index (JCI), it was recorded that it decreased from 3.05 percent (yoy) in March 2024 to 3.00 percent (yoy).

Governor of Bank Indonesia (BI) Perry Warjiyo said this development was influenced by core inflation and low administrative prices (AP) inflation of 1.82 percent (yoy) and 1.54 percent (yoy), respectively.

In addition, Perry said that volatile food (VF) inflation decreased from 10.33 percent (yoy) to 9.63 percent (yoy) in line with the decline in food commodity prices, mainly influenced by the start of the harvest period, as well as the continued synergy in controlling inflation by Bank Indonesia and the Government.

"In the future, Bank Indonesia believes that IHK 2024 inflation will remain under control in its targets," he said in his statement, quoted Friday, May 24.

According to Perry, core inflation is predicted to be maintained in line with inflation expectations that are rooted in the target, the economic capacity is still large and can respond to domestic demand, controlled imported inflation in line with Bank Indonesia's Rupiah exchange rate stabilization policy, and the positive impact of digitalization.

"VF inflation is also predicted to decline again as production increases due to the arrival of the harvest season and support for the synergy in controlling TPIP and TPID inflation through GNPIP in various regions," he said.

Perry said that Bank Indonesia will continue to strengthen its monetary policy of pro-stability and increase policy synergy with the Central-Regional Government so that inflation in 2024 and 2025 remains under control in the target of 2.5 percent plus minus 1 percent.