Arnoldus Kristianus, Jakarta – Indonesia's annual inflation rate slows to 2.51 percent in June 2024, driven mainly by decreases in food, beverages, and tobacco prices, the Central Statistics Agency (BPS) said on Monday.

Indonesia's consumer price index (CPI) declined to 106.28 in June 2024 from 106.37 in May 2024, marking the second deflation of the year.

"June 2024's deflation is the second deflation recorded in 2024," Acting Principal Secretary of BPS Imam Machdi said during a press conference at the BPS office.

The largest contributor to the monthly deflation was the food, beverages, and tobacco group, which saw a 0.49 percent decrease and contributed 0.14 percent to the overall deflation in June.

The volatile price component drove a deflation of 0.08 percent, which experienced a 0.98 percent deflation and contributed 0.16 percent to the overall rate. Major commodities in this category included shallots, tomatoes, and broiler chicken meat. From January to June 2024, commodities in the volatile price group frequently contributed to inflation.

"Gold jewelry and machine-made clove cigarettes have been the main contributors to inflation for six consecutive months (January-June 2024)," Imam added.

The core component saw a 0.1 percent inflation rate, contributing 0.06 percent to the overall figure, with significant contributions from gold jewelry and ground coffee. The government-regulated price component experienced a 0.12 percent inflation rate, contributing 0.02 percent, with machine-made clove cigarettes and airfares being the dominant contributors.

Source: https://jakartaglobe.id/business/indonesias-inflation-rate-slows-to-251-percent-in-jun