BPS Records Deflation In February 2025, Airlangga Predicts Inflation To Rise During Ramadan

Coordinating Minister for Economic Affairs (Menko) Airlangga Hartarto. (Photo: Mery Handayani/VOI)

Coordinating Minister for Economic Affairs Airlangga Hartarto explained that the deflation in February 2025 that occurred yesterday was caused by a decrease in prices related to prices regulated by the government or administrative price.

Airlangga said the deflation in February 2025 was due to a 50 percent reduction in electricity costs.

However, he added, core inflation or core inflation is still experiencing an increase.

"Yesterday the deflation was administrative price, administrative price because 50 percent electricity paid for it. Because the core inflation is still rising," he told the media crew at his office, Monday, March 10.

Regarding efforts to boost purchasing power, Airlangga said that during the month of Ramadan, inflation will usually increase due to the influence of increased consumption during that period.

"The purchasing system in this month of Ramadan, inflation will increase due to the influence of the month of Ramadan, usually inflation increases," he said.

Previously, the Central Statistics Agency (BPS) noted that there was deflation in February 2025 which was recorded at 048 percent on a monthly basis or month to month (mom) driven by price deflations regulated by the government.

Meanwhile, the consumer price index (IHK) experienced a decline from 105.99 in January 2025 to 105.48 in February 2025.

On an annual basis, Indonesia experienced deflation of 0.09 percent year on year (yoy), and deflation of 1.24 percent in calendar year calculations or year to date (ytd).

Head of BPS, Amalia Adininggar Widyasanti said that the core component experienced inflation of 0.25 percent with an inflationary contribution of 0.16 percent.

"The dominant commodities that contribute to the inflation of the core components are gold jewelry, powder coffee and cars," he said at the Press Conference, Monday, March 3.

Amalia said that the price component regulated by the Government experienced deflation of 2.65 percent by contributing 0.48 percent of deflation.

According to him, the dominant commodity that contributes to component deflation is the electricity tariff because there is a discount on electricity rates that will still take place in February 2025.