February 2025 Predicted To Experience Deflation

Inflation of deflation of illustrations (Photo: Unsplash)

JAKARTA - Bank Permata economist Josua Pardede estimates that in February 2025 it will continue deflation, driven by a decrease in food prices.

"Indonesia's Consumer Price Index (IHK) for February 2025 is expected to experience monthly deflation of 0.08 percent (mom), continuing the deflation of 0.76 percent (mom) in January 2025," he said in his statement, Monday, March 3.

According to him, the monthly deflation trend was caused by a decrease in food prices, driven by an increase in food supply. Therefore, his party anticipates significant monthly deflation in the volatile price group.

Meanwhile, Josua said that the price inflation set by the Government is projected to record monthly inflation influenced by rising non-subsidized fuel prices.

Josua said the monthly core inflation rate is expected to decline from 0.30 percent (mom) to 0.23 percent (mom) in February 2025. However, core inflation in February 2025 was largely influenced by the increase in global gold prices and the depreciation of Rupiah.

"Overall, we estimate that the cumulative IHK from January to February 2025 will reflect deflation of around 0.84 percent (ytd)," he said.