"Inflation on a monthly basis occurred, as there was an increase in the Consumer Price Index (CPI), from 112.75 in October 2022 to 112.85 in November 2022," Deputy for Distribution and Services Statistics at BPS Setianto during the "November 2022 Consumer Price Index Release" monitored online in Jakarta, Thursday.
With inflation of 0.09 percent (mtm) last month, annual inflation reached 5.42 percent as compared to the same period last year (year-on-year/yoy) and as compared to December 2021, it reached 4.82 percent (year-to-date/ ytd).
Apart from purebred chicken eggs, Setianto highlighted the increase in prices of commodities -- filter cigarettes, tomatoes, gold jewelry, rice, raw tempeh, and tofu -- that contributed to monthly inflation.
The price of purebred chicken eggs was the biggest contributor to inflation in November 2022 on a monthly basis, which is due to increased demand. The price of purebred chicken eggs rose by 2.77 percent (mtm) and 17.11 percent (yoy) to an average of Rp27,476 per kilogram.
Based on the group, the biggest contributor to the November 2022 inflation on a monthly basis was the personal care and other services group that experienced an inflation of 0.44 percent (mtm), with a share of 0.03 percent.
Meanwhile, based on the distribution of regions, Setianto said that as many as 62 cities out of 90 CPI cities experienced inflation, with the highest occurring in Ambon City, at 1.15 percent (mtm), due to rising filter cigarette prices, with a share of 0.32 percent; air transport, 0.09 percent; and tempeh, 0.08 percent.
"The deepest deflation occurred in Tanjung Pandan by 0.64 percent (mtm) due to rising prices for broiler meat, with a share of 0.19 percent; red chili and cayenne pepper, each 0.09 percent; and air transportation, 0.02 percent," he remarked.
Related news: BPS records 0.11-percent deflation in October 2022
Bank of Indonesia (BI) Governor Perry Warjiyo earlier vouched to suppress inflation back to normal, at three percent, give or take one percent, in 2023 and to 2.5 percent, give or take one percent, in 2024.
"Inflation, which is still very high now, will return to the target of three percent, give or take one percent, in 2023 and 2.5 percent, give or take one percent, in 2024," Warjiyo noted at the 2022 Bank Indonesia Annual Meeting here on Wednesday.
Warjiyo said the Consumer Price Index (CPI) inflation was estimated to be at three percent, give or take one percent, with core inflation to bounce back earlier in the first half of 2023.
He is optimistic of this target being achieved, as imported inflation remains under control, with a stable rupiah exchange rate and a front-loaded, pre-emptive, and forward-looking monetary policy response.
BI's commitment to pursuing the interest rate policy response through calibration in a measured, careful, and transparent manner will also ensure the achievement of the core inflation target.
The magnitude and timing of the interest rate policy response are based on developments in inflation expectations and core inflation as compared to initial estimates and targets to be achieved.
Related news: BI optimistic of 4.5--5.3% economic growth in 2023
Related news: Annual inflation well-maintained at 4.94% in July: BPS