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Inflation continues downward trend in January
Statistics Indonesia (BPS) announced on Thursday that the year-on-year consumer price index (CPI) growth in January had been recorded at 2.57 percent, well below the 5.28 percent yoy figure logged in January 2023.
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Vendors wait for customers at a traditional market in Tangerang, Banten, on April 3, 2022. (AFP/Adek Berry)
R
ecent data released by Statistics Indonesia (BPS) shows that headline inflation remained within what the government considers safe bounds in January and continued its three-month downward trend.
Interim BPS head Amalia Adininggar Widyasanti announced on Thursday that the year-on-year consumer price index (CPI) growth in January had been recorded at 2.57 percent, well below the 5.28 percent yoy figure logged in January 2023.
“The inflation level in January 2024 was lower than the previous month as well as the same month last year,” said Amalia at a press briefing.
She noted that rice, cigarettes and tomatoes contributed the most to inflation last month. Correspondingly, the volatile foods category continued to be a major source of inflation in January with yoy price growth of 7.22 percent.
Price increases in volatile foods accounted for 1.14 percentage points of the headline inflation figure last month and have, with the exception of December 2023, been moving consistently upward since August of last year.
Some of that food inflation is attributable to production disruptions prompted by the El Niño weather phenomenon, which brought drought and harvest delays to some parts of the country last year.
El Niño has a particularly strong effect on rice production, and the price of the commodity has been rising since September. Protectionist export policies from rice producing nations further restricted the supply available on global markets, boosting the price.
