January inflation was mainly contributed to by administered prices, such as vehicle registration fees and 900 volt-ampere (VA) electricity rates, as well as volatile foods including green chilies, fresh fish and broiler chickens.

BPS head Suhariyanto said January inflation was quite high because almost half of 19 million households with 900 VA capacity were using a prepaid electricity system, meaning the impact had been captured this month, earlier than predictions that it would only start to be seen in February.

(Read also: Electricity tariffs, vehicle registration fees to push January inflation: BI)

"It was previously expected that the effect [of the increase in electricity rates] would start to be seen in February because there is an assumption that most people use the post-paid method," he said at a press conference on Wednesday.

Meanwhile, contributions from increased vehicle registration fees would only be a one-off factor due to temporary shock, thus would not have an impact in February and subsequent months, the agency said.

The BPS predicted greater effects of the electricity rate adjustment would occur in March and May, thus administered prices would become major components affecting inflation throughout this year.

The BPS expects that measures to curb inflation prepared by a coordinating team consisting of the government and Bank Indonesia (BI) will help to manage the supply and distribution of food commodities.

BI has predicted annual inflation will hover between 3 percent and 5 percent this year.  (bbn)

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