Bank Indonesia Calls The Reduction Of Inflation Thanks To The Right Monetary Policy

Illustration (Photo: Doc. Antara)

JAKARTA Bank Indonesia (BI) positively welcomes the decline in inflation that occurred in the March 2023 period. According to the Head of the BI Communication Department Erwin Haryono, inflation according to the consumer price index (IHK) last month was recorded at 4.97 percent year in year (yoy).

"This is lower than February 2023 which amounted to 5.47 percent. The March 2023 inflation, which coincided with the start of the National Religious Holiday period (HBKN), remains under control," he said when delivering a written statement quoted on Tuesday, April 4.

Erwin explained, monthly inflation is relatively under control with a shift to 0.18 percent from 0.16 percent in the previous month.

"The realization of the March 2023 IHK inflation is lower than the historical pattern of inflation for the early Ramadan period," he said.

Erwin explained that the slick score at the end of the first quarter of this year was the result of the role of the central bank and related parties in efforts to control inflation.

"This development is inseparable from the response to Bank Indonesia's monetary policy and the close synergy of inflation control between Bank Indonesia and the central government, local governments, and other strategic partners in the Central and Regional Inflation Control Team (TPIP and TPID) through strengthening the National Movement for Food Inflation Control (GNPIP) program," he stressed.

For information, last month's IHK inflation or general inflation was heavily influenced by a gradual increase in demand amid pressure on global commodity prices.

Meanwhile, core inflation, which became BI's reference for setting interest rates, was recorded at 2.94 percent yoy or lower than inflation in the previous month of 3.09 percent yoy.

Then the volatile foods group inflation remained under control at 0.29 percent mtm, stable compared to inflation in the previous month of 0.28 percent mtm. The volatile foods group on an annual basis experienced inflation of 5.83 percent yoy, down compared to the previous month's inflation of 7.62 percent yoy.

The development was mainly contributed by the deflation of red chili and shallot commodities. Meanwhile, rice, cayenne pepper, and garlic commodities contributed inflation," Erwin continued.

Adapun, Inflasi kelompok administered prices tercatat lebih rendah dari bulan sebelumnya. Kelompok administered prices mencatat inflasi sebesar 0,12 persen atau mendasari dari inflasi bulan sebelumnya yang sebesar 0,14 persen mtm. Ke depan, Bank Indonesia mempercaya inflasi inti tetap terkendali dalam kisa 3 persen plus minus 1 persen pada semester I 2023 dan inflasi IHK kembali ke dalam sasaran 3 persen plus minus 1 persen mulai September 2023 setelah berakhirnya base effect penyesuaian harga Bahan Bakar Minyak (BBM) Bersubsidi tahun lalu, ungkap dia.

"Bank Indonesia will continue to strengthen coordination with the Government (Center and Region) in controlling inflation, including welcoming the HBKN period," Erwin concluded.