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1/2/2023 12:00 AM
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December 2022 Inflation Under Control, with Return to Target Predicted in 2023

Government Press Release

No. 25/1/DKom 

Developments in December 2022 indicate controlled Consumer Price Index (CPI) inflation.  Based on data published by BPS-Statistics Indonesia, CPI inflation in December 2022 stood at 0.66% (mtm), with headline inflation in 2022 thus reaching 5.51% (yoy) from 1.87% (yoy) in 2021.  This exceeds the 3.0%±1% target, primarily impacted by the knock-on effect of subsidised fuel price adjustments in September 2022. On a monthly basis, various developments point to manageable inflation after the fuel price hikes, as reflected by lower inflation expectations and milder inflationary pressures than previously expected.  CPI inflation remains under control due to the positive impact of close policy synergy between the (central and regional) Government, Bank Indonesia and various other strategic partners to lower the rate of inflation, including the second-round impact of fuel price hikes.  Moving forward, Bank Indonesia will continue to strengthen its policy response to ensure continued decrease in expected inflation and inflation so that core inflation remains within the range of 3.0%±1%.  Furthermore, policy coordination is constantly strengthened, particularly in terms of the National and Regional Inflation Control Teams (TPIP and TPID), while strengthening the National Movement for Food Inflation Control (GNPIP) in various regions. 

CPI inflation in December 2022 was predominantly influenced by seasonal year-end trends.  Core inflation was recorded at 0.22% (mtm), up from 0.15% (mtm) the month earlier on the back of house rent inflation.  Meanwhile, volatile food (VF) inflation increased to 2.24% (mtm) after recording 0.22% (mtm) deflation in the previous period in line with seasonal year-end trends.  Inflationary pressures on administered prices (AP) increased to 0.73% (mtm) from 0.14% (mtm) in the reporting period in response to higher water supply tariffs and a seasonal spike in demand for airfares during the Christmas and New Year festive period, as well as inflationary pressures on filtered kretek (clove) cigarettes.

Weaker-than-expected inflationary pressures in 2022 have buoyed the promising inflation outlook for 2023, with a return to the 3.0%±1% target corridor forecast.  Low core inflation was maintained in 2022 at 3.36% (yoy) in line with the muted knock-on effect of fuel price adjustments, coupled with mild inflationary pressures on the demand side. VF inflation also remained under control in 2022 at 5.61% (yoy) given close policy synergy and coordination through the TPIP-TPID teams and GNPIP movement to safeguard adequate supply, smooth distribution, price stability and effective communication.  Meanwhile, inflationary pressures on administered prices were lower than expected, at 13.34% (yoy), in line with smaller price adjustments to fuel and air fares.


Jakarta, 2nd January 2023

Communication Department

Erwin Haryono​

Executive Director 


Contact Center BICARA : (62 21) 131
E-mail :
Working hours: Monday to Friday, 08.00-16.00 West Indonesia Time​​

Halaman ini terakhir diperbarui 1/6/2023 11:23 AM
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