October 2024 Inflation Ends Deflation Trend Since May 2024

Inflation of deflation of illustrations (Photo: Unsplash)

JAKARTA - Inflation in October 2024 amounted to 0.08 percent (month-to-month/mtm) ending the deflation trend that has occurred since May 2024.

The Consumer Price Index (JCI) decreased from 105.93 in September 2024 to 106.01 in October 2024.

The largest monthly inflation contributor expenditure group (in October 2024) was personal care and other services with inflation of 0.94 percent and contributed 0.06 percent to inflation. The dominant commodity driving inflation in this group is gold jewelry which contributes 0.06 percent of inflation," said Acting Head of the Central Statistics Agency (BPS) Amalia Adininggar Widyasanti quoting Antara.

Other commodities that also contributed to inflation include broiler meat of 0.04 percent, onion 0.03 percent, tomatoes and rice with side dishes of 0.02 percent each. Then, namely powder coffee, cooking oil, machine keretek cigarettes (SKM), and broiler eggs which contributed 0.01 percent of inflation each.

Seven of the nine commodities belong to the food, beverage and tobacco group.

Food, beverage, tobacco groups experienced inflation again in October 2024 and contributed 0.03 percent to inflation after experiencing deflation since April 2024.

The same thing is shown from the inflation pattern of several commodities in this group. The commodity of shallots, chicken meat, and broiler eggs experienced inflation after several months earlier became the main contributor to deflation," said Amalia, who is familiarly called Winny.

Regarding gold jewelery as the main commodity that drives inflation in October 2024, this is influenced by the price of gold in the international market continuing to show an upward trend. This phenomenon is said to be reflected in the price of gold jewelery in the country.

Historically, the gold jewelery commodity experienced five deflations in 2022 and three deflations in 2023. However, the gold jewelery commodity has continued to experience inflation until October 2024 since September 2023.

For the transportation group in October 2024, it contributed 0.52 percent to deflation with 0.06 percent. The dominant commodities driving the group's deflation are gasoline and air transport rates with deflations of 0.06 percent and 0.01 percent, respectively.

For gasoline commodities, deflation has occurred for two consecutive months. This is of course in line with the adjustment of non-subsidized fuel prices (Bakar Oil) carried out by Pertamina and in line with the downward trend in oil prices in the global market," he said.

Furthermore, inflation in October 2024 was driven by core components experiencing inflation of 0.22 percent with an inflationary share of 0.14 percent. Commodities that contribute dominantly to inflation in the core component are gold jewelry, side dishes of rice, powdered coffee, and cooking oil.

Furthermore, the price component regulated by the government experienced a deflation of 0.25 percent with a deflation of 0.05 percent. The dominant commodities that contribute to deflation are gasoline and air transportation rates.

The volatile price component also experienced deflation of 0.11 percent which means it has experienced deflation for seven consecutive months. However, deflation pressure decreased in October 2024. The dominant commodities that contributed to deflation in this component were red chilies, cayenne peppers, potatoes, and fresh fish.

For the distribution of monthly inflation by region, as many as 28 out of 38 provinces in Indonesia experienced inflation, while the other 10 experienced deflation.

"The highest inflation occurred in Maluku which was 0.65 percent, while the deepest deflation occurred in North Maluku at 1.05 percent," said Winny.