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Jakarta Post

Inflation hits decades low amid electricity discount, waning spending power

Annual inflation in January 2025 is the lowest since January 2000, BPS says.

Deni Ghifari (The Jakarta Post)
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Jakarta
Mon, February 3, 2025

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Inflation hits decades low amid electricity discount, waning spending power Plug it in: A woman fills in prepaid electricity credit in Kendari, Southeast Sulawesi, in this photo taken on July 19, 2024. (Antara/Jojon)

I

ndonesia has recorded a multi-decade low inflation rate this January with experts saying the figure recorded this month is rather unusual and could be cause for concern.

Interim Statistics Indonesia (BPS) head Amalia Adininggar Widyasanti announced at a press conference on Monday that consumer price index (CPI) growth slipped to 0.76 percent year-on-year (yoy) in January.

“The annual inflation in January 2025 is the lowest since January 2000,” said Amalia.

The CPI figure was far lower than this year’s targets of 1.5 to 3.5 percent set by both the government and Bank Indonesia.

The inflation rate was still around 1.57 percent yoy in December last year after declining each month from 2.57 percent at the beginning of that year.

This January’s monthly inflation reading marks a decline of 0.76 percent month-to-month (mtm), attributable primarily to much lower electricity prices compared to a month prior.

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The price index for commodities under the categories of housing, water, electricity and household fuels saw a decline by 8.75 percent yoy with electricity as the dominant factor that pushed the group’s index.

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