BI's Forecast Is Getting More Real, The Inflation Rate Continues To Approach Levels Above 4 Percent

Illustration (Photo: Doc. Ministry of Finance)

JAKARTA - The Central Statistics Agency (BPS) reported that the inflation rate in May 2022 on an annual basis (year on year / yoy) was 3.55 percent.

Head of BPS Margo Yuwono said that on a month-to-month (mtm) basis, there was an inflation of 0.40 percent last month.

"Annual inflation of 3.55 percent is the highest since December 2017 of 3.61 percent," he said when giving information to the media crew online on Thursday, June 2.

According to Margo, inflation in May 2022 was due to an increase in prices, such as the food, beverage and tobacco group, the housing group, water, electricity, and home fuel, the equipment and equipment group, the health group, the transportation group, the communication group, and financial services. and recreational groups.

"The inflation rate for the calendar year (January-May) 2022 is 2.56 percent," he said.

Previously, Bank Indonesia (BI) had predicted that this year's inflation rate would exceed 4 percent yoy. This was conveyed directly by BI Governor Perry Warjiyo some time ago.

"Indeed, overall, we estimate that inflation may be slightly above 4 percent," Perry said.

For information, the government and the DPR have agreed in the 2022 State Budget Law that the domestic inflation rate must be maintained in the range of 3 percent plus minus 1 percent. This means that there is a strong projection that this year's inflation will miss the predetermined target.

VOI noted that the upward trend in inflation has occurred since last February with a magnitude of 2.03 percent. Then March and April respectively 2.64 percent and 3.47 percent.