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Indonesia's inflation rate drops to 0.25 percent in April 2024: BPS report

Jakarta Globe - May 2, 2024

Arnoldus Kristianus, Jakarta – The Central Statistics Agency (BPS) recorded a monthly inflation rate of 0.25 percent in April 2024, driven by rising transportation costs as millions of Indonesians embarked on the Eid exodus.

This rate was lower than the rates recorded in March 2024, which stood at 0.52 percent, and April 2023, which stood at 0.33 percent.

Meanwhile, the year-on-year inflation rate stood at 3 percent, and the calendar year inflation rate at 1.19 percent.

"Monthly inflation in April 2024 was 0.25 percent, representing an increase in the consumer price index from 106.13 in March 2024 to 106.4 in April 2024," said Acting Head of BPS, Amalia Adininggar Widyasanti, in a press conference at the BPS Office on Thursday.

The expenditure group contributing the most to inflation was transportation. This group experienced a 0.93 percent inflation rate, contributing 0.12 percent to April inflation.

Other commodities that contributed the most to year-on-year inflation in April 2024 included rice, chicken eggs, chicken meat, bird's eye chili, red chili, shallots, garlic, granulated sugar, tomatoes, hand-rolled clove cigarettes, ground coffee, machine-made clove cigarettes, machine-made white cigarettes, house rent, house lease, cars, gold jewelry, and rice with side dishes.

Monthly inflation distribution by region showed that 34 out of 38 provinces experienced inflation, while the remaining 4 experienced deflation. The highest inflation of 1.2 percent occurred in Papua and Central Papua, while the deepest deflation of 0.3 percent occurred in West Sumatra.

Last week, Bank Indonesia (BI) increased the benchmark BI-Rate by 25 basis points to 6.25 percent, citing escalating geopolitical tensions in the Middle East and high-interest rates in the US, causing the rupiah to weaken.

"This rate hike aims to strengthen the rupiah exchange rate amid worsening global risks and to ensure inflation remains within the target of 2.5 plus-minus 1 percent in 2024. It is in line with our pro-stability policy stance," said BI Governor Perry Warjiyo during a press conference after the monthly Board of Governors Meeting on Wednesday.

This is the first interest rate hike since October 2023.

Source: https://jakartaglobe.id/business/indonesias-inflation-rate-drops-to-025-percent-in-april-2024-bps-repor