Inflation In June 2024 Guarded, BI Reveals Thanks To The Consistency Results Of Monetary Policy

Inflation (Photo: Antara)

JAKARTA - The Central Statistics Agency (BPS) noted that the Inflation of the Consumer Price Index (IHK) in June 2024 was maintained at a target of 2.5 percent plus minus 1 percent. Based on BPS data, inflation in IHK in June 2024 recorded a deflation of 0.08 percent (mtm), so that on an annual basis it decreased to 2.51 percent (yoy) from the previous month's realization of 2.84 percent (yoy).

Assistant Governor of the Communications Department Erwin Haryono said that this maintained inflation was the result of the consistency of monetary policy and the close synergy of inflation control between Bank Indonesia and the Government in the Central and Regional Inflation Control Team (TPIP and TPID) through strengthening the National Movement for Food Inflation Control (GNPIP) in various regions.

"In the future, Bank Indonesia believes that inflation will remain under control in the 2.5 percent target range plus minus 1 percent in 2024 and 2025," he said in his statement, quoted on Tuesday, July 2.

Erwin conveyed this because core inflation in June 2024 was recorded at 0.10 percent (mtm), lower than inflation in the previous month of 0.17 percent (mtm).

According to Erwin, the lower core inflation was influenced by the expectations of polarized inflation, including during the National Religious Holidays (HBKN) Eid al-Adha, as well as the economic capacity which was still large and could respond to domestic demand.

The realization of core inflation in June 2024 was contributed mainly by the inflation of gold jewelery and powder coffee commodities. On an annual basis, core inflation in June 2024 was recorded at 1.90 percent (yoy), down from core inflation the previous month of 1.93 percent (yoy).

Meanwhile, volatile food groups in June 2024 experienced deflation of 0.98 percent (mtm), deeper than the previous month's deflation of 0.69 percent (mtm).

Meanwhile, volatile food group deflations were contributed mainly by shallot commodities, tomatoes and broiler meat.

Erwin said the decline in food commodity prices was supported by increased supply in line with the continuing harvest season and decreasing feed prices for broiler meat commodities.

On an annual basis, volatile food groups experienced inflation of 5.96 percent (yoy), a decrease from the previous month's inflation of 8.14 percent (yoy).

"In the future, volatile food inflation is predicted to remain under control, supported by the synergy of TPIP and TPID inflation control through GNPIP in various regions," he said.

Furthermore, the administrative price group in June 2024 experienced inflation of 0.12 percent (mtm), an increase from the previous month's realization which experienced deflation of 0.13 percent (mtm).

Erwin explained that the administrative price group inflation was contributed, especially by the inflation of machine kretek cigarettes (SKM) and air transportation rates along with the continued transmission of excise tax on tobacco products, as well as increased mobility during the Eid al-Adha holiday.

On an annual basis, the administrative price group inflation was recorded at 1.68 percent (yoy), an increase from the previous month's inflation of 1.52 percent (yoy).