The Ministry Of Finance Is Confident That The December 2024 Inflation Is In Accordance With The Government's Target

Head of the Fiscal Policy Agency (BKF) of the Ministry of Finance Febrio Kacaribu. (Photo: Doc. Antara)

JAKARTA - The Ministry of Finance is optimistic about the inflation performance in December 2024 as targeted by the government.

"December 2024 inflation was recorded to be under control in the government's target range, namely 1.57 percent (yoy). Meanwhile, inflation throughout 2024 decreased significantly from 2.61 percent at the end of 2023, mainly driven by food prices returning to normal levels," said Head of the Fiscal Policy Agency (BKF) of the Ministry of Finance, Febrio Kacaribu, quoted by Antara, in Jakarta, Friday, January 3.

In line with strong purchasing power, core inflation shows a strengthening trend throughout 2024, reaching 2.26 percent (yoy).

The strengthening of core inflation is supported by the positive trend of the group providing food and beverages, clothing and footwear, and personal care (especially an increase in gold prices).

By excluding the price of gold jewelery, core inflation is also still at the level of 1.72 percent (yoy) moving stably compared to 2023 (1.72 percent yoy). Throughout 2024, core inflation without gold has shown a strong trend since July 2024 (1.58 percent yoy).

Volatile food price inflation rose to 0.12 percent (yoy) from November 2024 (-0.32 percent yoy) and was much lower than the figure in December 2023, which was 6.73 percent.

According to Febrio, the control of food prices is supported by abundant stocks, conducive weather, and the synergy of food inflation control policies.

Meanwhile, inflation regulated by the Government (administered price) fell to 0.56 percent (yoy), from November 0.82 percent (yoy), and lower than the 2023 figure of 1.72 percent (yoy).

The control of inflation is regulated by the Government, supported by a fairly stable energy price policy and a reduction in air transportation rates during the Christmas and New Year holidays which contributes to monthly transportation deflation.

Febrio believes that maintaining inflation throughout 2024 cannot be separated from the commitment and support of policies to control anticipatory and responsive central and regional inflation, especially in supporting the control of food prices during the national religious holidays (HBKN).

"The strengthening of core inflation is supported by various fiscal incentive policies and purchasing power strengthening. Energy and transportation policies continue to be managed so that the administrative price risk remains under control," he said.