Chili, Egg And Meat Prices Drop, Indonesian Inflation After Eid Is Expected To Slope

Illustration (Photo: Doc. ANTARA)

JAKARTA - Bank Permata economist Josua Pardede estimates that the inflation in May 2024 will range from 0.03 percent on a monthly basis or month to month (mtm) or 2.90 percent on an annual basis or year on year (yoy), tends to decrease compared to the previous month which was recorded at 0.25 percent (mtm) or 3.00 percent (yoy).

"The decline in inflation occurs in all components, especially volatile price inflation and price inflation is regulated by the government which is experiencing post-Idul Fitri normalization," he explained in his statement, Monday, May 3.

Josua said that core inflation is estimated to be around 1.88 percent (yoy), the inflation rate indicates that Bank Indonesia (BI) policy interest rates tend to consistently increase inflation expectations.

Meanwhile, Josua said, volatile price inflation is expected to experience deflation driven by price reductions from most food commodities, including rice, chicken meat, beef, eggs, cayenne pepper.

In addition, the prices of several food commodities tend to increase, namely, shallots, white, and chilies.

"The government's regulated price inflation is also expected to decrease driven by the normalization of aircraft ticket rates and land transportation in line with the normalization of post-Idulfitri demand," he concluded.