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BPS reports 0.41 percent inflation for December 2023

Jakarta Globe - January 2, 2024

Arnoldus Kristianus, Alfida Rizky Febrianna, Jakarta – The Central Statistics Agency (BPS) recorded a monthly inflation rate of 0.41 percent in December 2023, the highest throughout the year. Meanwhile, year-on-year inflation stood at 2.61%, the lowest in the last 20 years.

"Excluding the pandemic-affected period, which was in 2021, the inflation rate in 2023 is the lowest in the last 20 years," said Acting Head of BPS, Amalia A. Widyasanti, in a press conference at the BPS office on Tuesday.

The Government had set the inflation target for 2023 and 2024 at 3 percent and 2.5 percent respectively within a plus-minus 1 percent corridor.

The expenditure group contributing the most significant inflation was food, beverages, and tobacco. This expenditure group experienced inflation of 1.07%, contributing 0.29% to the December 2023 inflation.

"The main commodities contributing to inflation are red chili (0.06 percent), shallots (0.04 percent), tomatoes (0.03 percent), bird's eye chili (0.02 percent), rice (0.02 percent), and eggs (0.02 percent)," said Amalia.

The second group with the most significant contribution is transportation, experiencing inflation of 0.45 percent and contributing 0.06 percent to the December 2023 inflation.

Next is the group of personal care and other services, experiencing inflation of 0.46 percent and contributing 0.03 percent to the December 2023 inflation. The fourth group contributing to inflation is recreation, sports, and culture, experiencing inflation of 0.54 percent and contributing 0.01 percent to the December 2023 inflation.

"Commodities outside the food, beverage, and tobacco group that significantly contribute to inflation include air transportation fares (0.05 percent) and gold jewelry (0.02 percent)," explained Amalia.

Of the 90 cities monitored by BPS, 85 cities experienced inflation, and 5 cities experienced deflation. Among the 85 monitored cities, 33 cities had inflation higher than the national inflation. The highest inflation occurred in Ternate (1.64 percent), and the deepest deflation occurred in Meulaboh (0.67 percent).

The administered prices component experienced inflation of 0.39 percent, contributing 0.07 percent to the December 2023 inflation. The volatile price component experienced inflation of 1.42 percent, contributing 0.25 percent to the December 2023 inflation. Meanwhile, the core component inflation is 0.14 percent, contributing 0.09 percent to the December 2023 inflation.

Source: https://jakartaglobe.id/business/bps-reports-041-percent-inflation-for-december-202