Driven By Food Price Deflation, Inflation May 2024 Expected To Drop

Rupiah (photo: dock. Antara)

JAKARTA - Bank Mandiri Chief Economist Andry Asmoro estimates inflation in May 2024 will reach 2.98 percent (year-on-year/yoy) and 0.11 percent (month-on-month/mom).

Andry explained that May inflation is predicted to slow down compared to the previous month which was 3.00 percent (yoy).

"Monthly, we expect domestic inflation to increase by 0.11 percent (mom), lower than 0.25 percent (mom) in the previous month," Andry said in a statement, quoted Monday, May 3.

Andry said that based on the National Strategic Food Price Information Center (PIHPS) of Bank Indonesia, several food prices were recorded to have decreased prices in May 2024 due to the effect of normalizing prices after Eid al-Fitr 1445 Hijriah.

According to Andry, some food prices such as beef, chicken, and eggs have deflation.

"The price of rice also continues to deflate, showing a decrease of about 2 percent, continuing to deflate by 1.6 percent in the previous month," he said.

However, Andry said that the price of red chilies in May 2024 was still increasing, preventing a deeper decline in inflation as a whole.

Meanwhile, Andry estimates that core inflation will slightly increase from the previous month of 1.82 percent (yoy) to 1.84 percent (yoy) in May 2024.