No. 26/239/DKom
Consumer Price Index (CPI) Inflation was maintained within the 2.5%±1% target corridor in October 2024. Based on inflation data published by BPS-Statistics Indonesia, the CPI index in October 2024 recorded 0.08% (mtm) inflation, bringing annual headline inflation down to 1.71% (yoy) from the 1.84% (yoy) realised one 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 Government 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 within the 2.5%±1% target corridor in 2024 and 2025.
Core inflation remains under control. Core inflation in October 2024 stood at 0.22% (mtm), up from 0.16% (mtm) the month earlier. Core inflation in the reporting period was influenced by higher international commodity prices despite inflation expectations anchored to the inflation target. Realised core inflation in October 2024 was primarily contributed by gold jewellery, rice with a side dish, and instant coffee. Annually, therefore, core inflation in October 2024 was recorded at 2.21% (yoy), increasing from 2.09% (yoy) in the previous period.
Volatile food (VF) maintained a deflationary trend. Volatile food experienced shallower 0.11% (mtm) deflation in October 2024 compared with 1.34% (mtm) the month earlier. VF deflation in the reporting period primarily stemmed from various chili varieties, potatoes and fresh fish. Lower food prices were supported by higher supply given the ongoing harvesting season, particularly for horticultural crops. Annually, VF inflation was recorded at 0.89% (yoy), retreating from 1.43% (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) also experienced deflationary pressures. Administered prices in October 2024 recorded deeper 0.25% (mtm) deflation after posting 0.04% (mtm) deflation the month earlier. The main contributors to AP deflation in the reporting period were fuel in response to non-subsidised fuel price adjustments, as well as airfares. Annually, therefore, AP inflation decreased to 0.77% (yoy) in October 2024 from 1.40% (yoy) the month earlier.
Jakarta, 1st November 2024
Communication Department
Ramdan Denny Prakoso
Executive Director
