Airlangga Denies Purchasing Power Weakened Due To 5 Months Of Deflation In A Row

Coordinating Minister for the Economy Airlangga Hartarto (Photo: dock. VOI)

JAKARTA - The Central Statistics Agency (BPS) noted that monthly deflation occurred in September 2024 which was recorded at 0.12 percent on a monthly basis or month to month (mom) or higher when compared to August 2024 of 0.03 percent.

The deflation in September 2024 is the 5th consecutive month of deflation since May 2024.

Coordinating Minister for Economic Affairs Airlangga Hartarto conveyed that deflation in September 2024 and was the fifth deflation in a row, not a sign that people's purchasing power had decreased.

"Core inflation determines whether deflation or not deflation. In this case (core inflation), it is not deflation (not monthly deflation due to weakening purchasing power)," Airlangga told reporters at the Coordinating Ministry for the Economy Office, Tuesday, October 1.

According to Airlangga, the cause of deflation in September 2024 was due to performance carried out by the Central Inflation Control Team (TPIP) and the Regional Central Inflation Control Team (TPID) in controlling prices.

"What goes down is volatile food, that's what TPIP TPID does. Why is volatile food being pursued? Because if food prices are affordable, purchasing power will increase," he said.

To note, currently, Indonesia's core inflation is still recorded at 0.16 percent on a monthly basis or month to month (mtm), with an inflationary contribution of 0.10 percent.