BI Says Inflation Remains Controlled In November 2024

Bank Indonesia (Photo: Antara)

JAKARTA - Bank Indonesia (BI) revealed that the Inflation of the Consumer Price Index (IHK) in November 2024 will be maintained in the target range of 2.5 percent plus minus 1 percent.

Based on data from the Central Statistics Agency, the IHK in November 2024 recorded inflation of 0.30 percent (mtm), so that on an annual basis it decreased to 1.55 percent (yoy) from the realization of inflation in the previous month of 1.71 percent (yoy).

Executive Director of the Communication Department, Ramdan Denny Prakoso, 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 (Center and Region) in the Central and Regional Inflation Control Team (TPIP and TPID) through 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, Tuesday, December 3.

Denny said that core inflation was maintained in November 2024 at 0.17 percent (mtm), lower than inflation in the previous month of 0.22 percent (mtm).

According to Denny, core inflation is driven by an increase in global commodity prices, amid inflation expectations that remain maintained in the target range.

"The core inflation in November 2024 was contributed mainly by inflation of gold jewelery, cooking oil and powdered coffee commodities," he said.

Meanwhile, on an annual basis, core inflation in November 2024 was recorded at 2.26 percent (yoy), an increase from core inflation in the previous month of 2.21 percent (yoy).

In addition, volatile food groups are experiencing inflation. The volatile food group in November 2024 experienced inflation of 1.07 percent (mtm), an increase from the previous month's deflation of 0.11 percent (mtm).

Denny conveyed that the volatile food group inflation was contributed mainly by shallot commodities, tomatoes, and broiler meat.

Meanwhile, the increase in the price of horticultural commodities was driven by the ongoing planting period, while the increase in the price of broiler meat commodities was influenced by the rising price of Old Chicks (DOC).

On an annual basis, Denny said that the volatile food group experienced deflation of 0.32 percent (yoy), a decrease from inflation in the previous month of 0.89 percent (yoy).

Denny said that 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.

"Administered prices groups experienced inflation. Administered prices groups in November 2024 experienced inflation of 0.12 percent (mtm), an increase from the previous month's realization which recorded deflation of 0.25 percent (mtm)," he explained.

Denny said that the administrative price group inflation is supported mainly by machine kretek cigarettes (SKM) and air transportation rates, along with the continued transmission of excise increases in tobacco products and increased community mobility.

On an annual basis, the administrative price group inflation was recorded at 0.82 percent (yoy), an increase from the previous month's inflation of 0.77 percent (yoy).