No. 27/72/DKom
The Consumer Price Index (CPI) in March 2025 experienced inflation compared with the previous period. Based on inflation data published by BPS-Statistics Indonesia, the CPI index in March 2025 recorded 1.65% (mtm) inflation, or 1.03% (yoy) inflation annually. 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 March 2025 was recorded at 0.24% (mtm), relatively stable compared with 0.25% (mtm) realised the month earlier. Core inflation in the reporting period was primarily influenced by higher prices of several global commodities, accompanied by a seasonal spike in demand during the Eid-ul-Fitr national religious holidays (HBKN), despite anchored inflation expectations. The main contributor to core inflation in March 2025 was gold jewellery. Annually, core inflation in March 2025 remained stable at 2.48% (yoy), unchanged from the previous period.
Volatile food (VF) experienced inflation. VF inflation in March 2025 was recorded at 1.96% (mtm), accelerating from 0.93% (mtm) deflation the month earlier. The main contributors to VF inflation in the reporting period were shallots, bird's eye chilis and purebred chicken meat. The prices of shallots and bird's eye chilis increased on the back of limited production due to weather disruptions, while the price of purebred chicken meat was edged upwards by higher demand during the Eid-ul-Fitr festive period. Annually, VF inflation was recorded at 0.37% (yoy), retreating from 0.56% (yoy) the month earlier this. Moving forward, Bank Indonesia expects to manage VF inflation, supported by close inflation control synergy with the TPIP and TPID teams through the GNPIP movement in various regions.
Administered prices (AP) also experienced inflationary pressures. Administered prices in March 2025 recorded 6.53% (mtm) inflation, accelerating from 2.65% (mtm) deflation in February 2025. AP inflation in the reporting period primarily stemmed from electricity tariffs after the Government discontinued the 50% discount policy for households with an installed electrical capacity up to 2,200VA. Notwithstanding, higher AP inflation was offset by lower airfares as the Government implemented discount policy on economy class domestic airfares during the Eid-ul-Fitr period. Annually, therefore, AP deflation was recorded at 3.16% (yoy) in March 2025, shallower than the 9.02% (yoy) deflation realised one month earlier.
Jakarta, 8th April 2025
Communication Department
Ramdan Denny Prakoso
Executive Director
