No. 24/94/DKom
According to data from BPS-Statistics Indonesia, the Consumer Price Index (CPI) in March 2022 recorded 0.66% (mtm) inflation after experiencing 0.02% (mtm) deflation one month earlier. Headline inflation was influenced by a build-up of inflationary pressures on volatile food and administered prices amid relatively stable core inflation. Annually, CPI inflation in March 2022 stood at 2.64% (yoy), up from 2.06% (yoy) the month earlier. Moving forward, Bank Indonesia will consistently maintain price stability and strengthen policy coordination with the central and regional governments to control inflation within the 3.0%±1% target corridor in 2022.
Core inflation in March 2022 was relatively stable at 0.30% (mtm) compared with 0.31% (mtm) in February 2022. By commodity, the main contributors to core inflation in the reporting period were gold jewellery and house rentals in line with global gold prices and increasing community mobility. Annually, core inflation in March 2022 stood at 2.37% (yoy), up from 2.03% (yoy) in the previous period. Core inflation remained under control despite early signs of growing domestic demand, supported by maintained exchange rate stability and policy consistency by Bank Indonesia to anchor inflation expectations.
Volatile food in March 2022 recorded 1.99% (mtm) inflation to reverse the 1.50% (mtm) deflation recorded in February 2022. The turnaround primarily stemmed from inflationary pressures on prices of red chilies, cooking oil and purebred chicken eggs in response to inclement weather at several major production hubs, removal of the maximum retail price (HET) on basic and premium cooking oil as well as higher production costs in the form of feed. Annually, volatile food inflation increased significantly to 3.25% (yoy) from 1.81% (yoy) in the previous period.
Administered prices in March 2022 recorded higher 0.73% (mtm) inflation compared with 0.18% (yoy) the month earlier. Administered prices were influenced by household fuel and petrol in line with non-subsidised LPG and non-subsidised petrol prices. In addition, higher airfares also contributed to inflationary pressures on administered prices in line with greater public mobility. Annually, administered prices inflation increased to 3.06% (yoy) from 2.34% (yoy).
Jakarta, 1st April 2022
Head of Communication Department
Erwin Haryono
Executive Director
Information about Bank Indonesia
Tel. 021-131, Email: bicara@bi.go.id
