Bank Indonesia believes inflation will remain under control within the target range of 3 plus minus 1 percent for the remainder of 2023 and 2.5 plus minus 1 percent in 2024Jakarta (ANTARA) - Inflation in August 2023 was maintained within the target range of three plus minus one percent due to the consistency of monetary policy, Bank Indonesia (BI) has said.
The August 2023 Consumer Price Index (CPI) recorded a deflation of 0.02 percent month-to-month (mtm). On an annual basis, inflation was registered at 3.27 percent year on year (yoy).
"Bank Indonesia believes inflation will remain under control within the target range of three plus minus one percent for the remainder of 2023 and 2.5 plus minus one percent in 2024," BI Communications Department Executive Director Erwin Haryono said.
According to Haryono here Monday, the controlled inflation was also a tangible result of the close synergy between Bank Indonesia and the central and regional inflation control teams and the strengthening of the National Food Inflation Control Movement (GNPIP) in various regions.
Meanwhile, core inflation remained low in August at 0.13 percent mtm and was stable at the previous month's level, he said.
This development was mainly driven by commodity inflation in academy and college fees and school fees, in line with the start of the new academic year. On an annual basis, core inflation in August was recorded at 2.18 percent yoy, down from 2.43 percent yoy the previous month.
Inflation in the volatile food group also recorded a decline. The volatile food group experienced deflation of 0.51 percent mtm in August after recording an inflation of 0.17 percent mtm the previous month.
This development was mainly triggered by the deflation in the prices of purebred chicken, shallots, and eggs. Meanwhile, further deflation was restrained by an inflation in rice and chili pepper prices.
On an annual basis, the volatile foods group experienced inflation of 2.42 percent yoy in August, an increase compared to deflationary inflation of 0.03 percent yoy the previous month.
The administered prices group also recorded deflation of 0.02 percent mtm in August, down from an inflation of 0.44 percent mtm the previous month.
This development was mainly influenced by deflation in household fuels and airfares due to a decrease in the price of non-subsidized liquid petroleum gas at the agent level and the normalization of air transport fares after the school holiday period.
Meanwhile, further deflation was restrained by an inflation in the prices of filtered clove cigarettes and white cigarettes, driven by the continued transmission of increases in tobacco excise rates.
On an annual basis, administered price inflation continued to decline to reach 8.05 percent yoy, lower than the previous month's inflation of 8.42 percent yoy.
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Translator: Martha H, Azis Kurmala
Editor: Rahmad Nasution
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