Bank Indonesia: Increased Inflation December 2022 Controlled According To Target

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JAKARTA Bank Indonesia (BI) stated that inflation based on the consumer price index (CPI) in December 2022 which rose to 5.51 percent year on year (yoy) is still under control.

Head of the BI Communication Department Erwin Haryono said the figure was higher than the central bank's target for the past year, which was 3 percent plus minus 1 percent.

"Last year's inflation was mainly influenced by the impact of subsidized fuel oil (BBM) price adjustments in September 2022," he said in a written statement quoted on Tuesday, January 3.

Erwin explained that various monthly developments show that post-increase inflation in fuel prices is again controlled as reflected in inflation expectations and inflationary pressures that continue to decline and are lower than the initial forecast.

"The development of controlled IHK inflation cannot be separated from the positive influence of the tighter policy synergy between the central and regional governments, Bank Indonesia, and various strategic partners in reducing the inflation rate, including controlling the continued impact of fuel price adjustments," he said.

Meanwhile, core inflation was recorded at 0.22 percent mtm, an increase compared to inflation the previous month of 0.15 percent contributed by housing contract commodities.

Meanwhile, volatile food groups experienced inflation of 2.24 percent or higher than the previous month which recorded deflation of 0.22 percent, in line with the seasonal pattern at the end of the year.

Then for the administered prices group recorded inflation of 0.73 percent, an increase from inflation the previous month of 0.14 percent in line with the increase in drinking water company rates, and in line with seasonal patterns of increasing demand for air transportation on Christmas and New Year, as well as filter kretek cigarette inflation.

"In the future, Bank Indonesia will continue to strengthen its policy response to ensure that inflation and inflation continue to decline so that core inflation is maintained in the range of 3 percent plus minus 1 percent," Erwin concluded.