No. 27/45/DKom
The Consumer Price Index (CPI) in February 2025 experienced deflation compared with the previous period. Based on inflation data published by BPS-Statistics Indonesia, the CPI index in February 2025 recorded 0.48% (mtm) deflation, or 0.09% (yoy) deflation annually, retreating from 0.76% (yoy) inflation the month earlier. Headline deflation stemmed from lower administered prices (AP), predominantly electricity tariffs, and volatile food (VF) in the form of purebred chicken meat, shallots and various chili varieties. Bank Indonesia will consistently maintain price stability and strengthen synergy to control inflation with the (central and regional) Government in the Central 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 and within the 2.5%±1% target corridor in 2025.
Low core inflation was also maintained. Core inflation in February 2025 was recorded at 0.25% (mtm), down from 0.30% (mtm) realised the month earlier. Core inflation in the reporting period was primarily influenced by higher prices of several global commodities despite anchored inflation expectations. The main contributors to core inflation in February 2025 were gold jewellery, powdered coffee and cars. Annually, core inflation in February 2025 stood at 2.48% (yoy), accelerating from 2.36% (yoy) the month earlier.
Volatile food (VF) experienced deflation. Volatile food in February 2025 recorded 0.93% (mtm) deflation after recording 2.95% (mtm) inflation in January 2025. The main contributors to VF deflation in the reporting period were purebred chicken meat, various chili varieties and shallots in line with lower production input costs in the form of feed and higher horticultural production. Annually, VF inflation was recorded at 0.56% (yoy), down from 3.07% (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 February 2025 recorded shallower 2.65% (mtm) deflation after posting 7.38% (mtm) deflation the month earlier. AP deflation primarily stemmed from electricity tariffs after the Government introduced discount policy of up to 50% for households with an installed electrical capacity up to 2,200VA. Annually, therefore, AP deflation was recorded at 9.02% (yoy) in February 2025, deeper than the 6.41% (yoy) deflation realised the month earlier.
Jakarta, 3rd March 2025
Communication Department
Ramdan Denny Prakoso
Executive Director
