No. 26/132/DKom
Consumer Price Index (CPI) inflation in June 2024 was maintained within the 2.5%±1% target corridor. Based on inflation data published by BPS-Statistics Indonesia, the CPI index in June 2024 recorded 0.08% (mtm) deflation, thus bringing headline inflation down to 2.51% (yoy) annually in the reporting period from 2.84% (yoy) the month earlier. Inflation was maintained within the target range due to 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 strengthening the National Movement for Food Inflation Control (GNPIP) in various regions. Moving forward, Bank Indonesia is confident that inflation will remain manageable within the 2.5%±1% target corridor in 2024 and 2025.
Core inflation remains under control. Core inflation in June 2024 stood at 0.10% (mtm), down from 0.17% (mtm) the month earlier. Lower core inflation in the reporting period was spurred by anchored inflation expectations, particularly during the Eid-ul-Adha national religious holiday (HBKN), coupled with ample economic capacity in response to domestic demand. The main contributors to core inflation in June 2024 were gold jewellery and powdered coffee. Annually, core inflation in June 2024 was recorded at 1.90% (yoy), retreating from 1.93% (yoy) in the previous period.
Volatile food (VF) maintained a deflationary trend. Volatile food experienced deeper 0.98% (mtm) deflation in June 2024 compared with 0.69% (mtm) the month earlier. VF deflation in the reporting period primarily stemmed from shallots, tomatoes and purebred chicken meat. Lower food prices were supported by higher supply given the ongoing harvesting season as well as lower feed prices, which affected purebred chicken meat. Annually, VF inflation was recorded at 5.96% (yoy), down from 8.14% (yoy) the month earlier. Moving forward, Bank Indonesia expects to manage VF inflation, supported by inflation control synergy with the TPIP and TPID teams through the GNPIP movement in various regions.
Administered prices (AP) recorded inflation. Administered prices in June 2024 experienced 0.12% (mtm) inflation, accelerating slightly from 0.13% (mtm) deflation the month earlier. The main contributors to AP inflation in the reporting period were machine-rolled clove cigarettes and airfares in response to producers passing through higher excise duties on tobacco products to consumers as well as greater public mobility during the Eid-ul-Adha national religious holiday. Annually, therefore, AP inflation increased to 1.68% (yoy) in June 2024 from 1.52% (yoy) the month earlier.
Jakarta, 1st July 2024
Communication Department
Erwin Haryono
Governor Assistant
