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2021 inflation below BI target, but increase looms
The consumer price index (CPI) was up 1.87 percent year-on-year (yoy) in December 2021, the highest since July 2020. But the full-year figure remained lower than Bank Indonesia’s target range.
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A firefighter sprays disinfectant at the Kramat Jati wholesale market in East Jakarta in June 2020. (JP/P.J.Leo)
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ull-year inflation remained below Bank Indonesia’s (BI) target range for 2021, but the relaxation in mobility curbs led prices to gradually increase, at least from September last year.
Statistics Indonesia (BPS) reported on Monday that the consumer price index (CPI) was up 1.87 percent year-on-year (yoy) in December 2021 — the highest seen since July 2020. On a monthly basis, the inflation rate was 0.57 percent, or the highest level in two years.
“In the last three months, we saw an uptick in core inflation on a yoy basis, indicating an improvement in people’s purchasing power,” BPS head Margo Yuwono said in a press briefing on Monday.
The full-year inflation figure of 1.87 percent remained lower than BI’s target range of between 2 and 4 percent.
Consumer prices picked up in December 2021, as people routinely raise their spending during Christmas and New Year, mostly on food and beverages and travel. The ongoing pandemic, however, kept them below normal levels.
Read also: Retail sales recovery lags despite eased curbs
The food, beverages and tobacco expenditure group was the primary driver of the monthly inflation in December, contributing 0.41 percentage points. The commodities that drove the prices include cayenne pepper, cooking oil, chicken eggs, chicken meat, red chili pepper, fresh fish and some vegetables.
