No. 23/136/DKom
Based on data published by BPS-Statistics Indonesia, the Consumer Price
Index (CPI) accelerated to 0.32% (mtm) in May 2021 from 0.13% (mtm) in
the previous period. Headline inflation increased across all
components, namely core inflation, volatile foods and administered
prices. Annually, consumer price inflation rose to 1.68% (yoy) in May
2021 from 1.42% (yoy) one month earlier. Moving forward, Bank Indonesia
remains committed to maintaining price stability and strengthening
policy coordination with the central and regional governments to control
inflation in 2021 in line with the 3.0%±1% target.
Core inflation increased to 0.24% (mtm) in May 2021 from 0.14% (mtm) in
April 2021. The main drivers of core inflation were gold jewellery in
line with the higher global gold price and a seasonal spike in demand
during the recent festive period. Annually, core inflation was recorded
at 1.37% (yoy), up from 1.18% (yoy) in the previous period.
Persistently low core inflation is a corollary of compressed domestic
demand, exchange rate stability and policy consistency by Bank Indonesia
to anchor inflation expectations.
Volatile foods (VF) recorded higher 0.39% (mtm) inflation in May 2021
compared with 0.15% (mtm) in April 2021. Higher VF inflation was
attributable to rising prices of purebred chicken meat, fresh fish and
cooking oil in line with growing seasonal demand and the upward crude
palm oil (CPO) price trend globally. Notwithstanding, more intense
inflationary pressures on volatile foods were offset by price
corrections affecting horticultural commodities during the ongoing
harvesting season. Annually, VF inflation increased to 3.66% (yoy) from
2.73% (yoy) one month earlier.
Administered prices recorded 0.48% (mtm) inflation in May 2021, up from
0.11% (mtm) in April 2021. Administered prices were edged upwards by
higher transportation tariffs, dominated by airfares, intercity travel
and railway travel, during the Eid-ul-Fitr festive period. Annually,
however, administered prices experienced lower 0.93% (yoy) inflation
compared with 1.12% (yoy) the month earlier.
Jakarta, 2nd June 2021
Head of Communication Department
Erwin Haryono
Executive Director
Information about Bank Indonesia
Tel. 021-131, Email: bicara@bi.go.id
