No. 26/21/DKom
Consumer Price Index (CPI) inflation in January 2024 was maintained within the 2.5%±1% target corridor. According to inflation data published by BPS-Statistics Indonesia based on the Cost of Living Survey (SBH) using 2022 as the new base year, CPI inflation in January 2024 was recorded at 0.04% (mtm), or 2.57% (yoy) annually, down from 2.61% (yoy) the month earlier. Inflation was maintained within the target range as a corollary of monetary policy consistency and close synergy to control inflation between Bank Indonesia and the (central and regional) Government in the National and Regional Inflation Control Teams (TPIP and TPID) through the National Movement for Food Inflation Control (GNPIP) in various regions. Moving forward, Bank Indonesia is confident that inflation will remain manageable in the 2.5%±1% target corridor in 2024.
Low core inflation was maintained. Core inflation in January 2024 stood at 0.20% (mtm), up slightly from 0.14% (mtm) the month earlier, primarily influenced by gold jewellery, house rentals and leasing. Annually, core inflation in January 2024 was recorded at 1.68% (yoy), down from 1.80% (yoy) one month earlier.
Volatile food (VF) inflation tracked a downward trend. VF inflation in January 2024 fell to 0.01% (mtm) from 1.42% (mtm) in the previous period, primarily supported by the increasing supply of various chili varieties on the back of production improvements. Lower VF inflation was offset, however, by higher prices of tomatoes, shallots and rice. Annually, VF inflation increased to 7.22% (yoy) from 6.73% (yoy) one month earlier.
Administered prices (AP) recorded deflation in the reporting period. After posting 0.39% (mtm) inflation in December 2023, administered prices experienced 0.48% (mtm) deflation in January 2024. The main contributors to AP deflation in the reporting period where lower airfares after the recent Christmas and New Year festive period, as well as adjustments to non-subsidised fuel prices. Annually, AP inflation remained relatively stable at 1.74% (yoy) compared with 1.72% (yoy) the month earlier.
Jakarta, 1st February 2024
Communication Department
Erwin Haryono
Governor Assistant
