Fuel Prices Drop To One Of The Causes Of Deflation In September 2024

Fuel price (Photo: dock. intermediate)

JAKARTA - The Central Statistics Agency (BPS) noted that the price of fuel oil (BBM) was one of the causes of deflation. Because the price of non-subsidized fuel fell in September 2024.

To note, in September 2024 there was a deflation of 0.12 percent on a monthly basis or month to month (mom) or higher than in August 2024 of 0.03 percent.

Plt. The Head of BPS, Amalia Adininggar Widyasanti, said that the deflation in September 2024 was deeper than in August 2024.

"There was a decline in the consumer price index from 106.06 in August 2024 to 105.93 in September 2024," he said at a press conference in Jakarta, Tuesday, October 1.

Amalia said that there was an adjustment in fuel prices in September 2024. Where fuel that experienced a decline in prices was a special non-subsidized fuel, where the price of gasoline was 0.72 percent and diesel 0.74 percent.

"We noted that the commodity of gasoline and diesel experienced deflation in September 2024 and the level of deflation was 0.72 percent and 0.74 percent," he said.

Amalia said that the decline in gasoline prices contributed to deflation with 0.04 percent of deflation, and the lowest relative of gasoline deflation in September 2024 compared to December 2023.

In addition, Amalia said that historically deflation in September 2024 was the deepest compared to the same month in the last 5 years. With a share rate of 0.12 percent.

According to Amalia, deflation for the past 5 months was contributed by a decrease in the price of broiler meat.

"In the last 5 months, the broiler meat commodity has been included in the top 5 main commodities that contributed to deflation with the deflation rate and deflation contribution in September 2024 of 1.18 percent and 0.02 percent," he said.

Amalia said that deflation in the last 5 months was seen in general contributed by the decline in commodity prices.

The food, beverage and tobacco group and the main contributor to deflation in September 2024 and even deflation in this group have occurred for 6 consecutive months since April 2024.

"The September 2024 deflation rate, the food and beverage and tobacco group is the deepest September deflation throughout 2020-2024 with a deflation rate of 0.59 percent and a deflation contribution of 0.17 percent," he said.

Meanwhile, on an annual basis or year on year (yoy) inflation in September 2024 was 1.84 percent. This figure is lower than September 2023 of 2.28 percent.