Deflation 5 Months In A Row, BI Values People's Purchasing Power To Stay Guarded

Deputy Governor of Bank Indonesia Juda Agung. (Photo: Aris Nurjani/VOI)

JAKARTA - Bank Indonesia (BI) believes that in September 2024 Indonesia's inflation will still be maintained stable in the target range of 2.5 percent plus minus 1 percent and people's purchasing power will still be maintained.

For information, 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.

BI Deputy Governor Juda Agung said that inflation in Indonesia in recent years has remained stable in the range of 2 percent.

"It is still within the range of Bank Indonesia 2.5 percent plus minus 1 percent. So it is still within the target range," he said at his office, Wednesday, October 2.

Therefore, Juda sees that there is no weakening of people's purchasing power which is excessive from the economy.

Previously, the Central Statistics Agency revealed that the Consumer Price Index (IHK) inflation in September 2024 was recorded at 105.93 compared to August 2024 at 106.06. Meanwhile, in September 2023 it was 104.02.

Core inflation in September 2024 was recorded at 0.16 percent (mtm), lower than inflation in the previous month of 0.20 percent (mtm).

Meanwhile, on an annual basis, core inflation in September 2024 was recorded at 2.09 percent (yoy), an increase from inflation in the previous month of 2.02 percent (yoy).