February 2023 Inflation of 0.16%

Jakarta, CNBC Indonesia – The Central Statistics Agency (BPS) noted that the Consumer Price Index as of January 2023 experienced inflation reaching 0.16% on a monthly basis. Meanwhile, annual inflation reached 5.47% and calendar year inflation 0.50%.

Pudji Ismartini, Deputy for Distribution and Services Statistics at BPS, said that inflation this time was triggered by the food, beverage and tobacco group experiencing the highest inflation. Meanwhile, the transportation category experienced the deepest deflation, following a reduction in air fares due to avtur prices.

“If you look at the series on the chart, inflation in February 2023 is lower than inflation in the previous month January 2023 which was 0.34%,” said Pudji, Wednesday (1/3/2023).

Meanwhile, inflation in February was recorded in line with market expectations. The market consensus compiled by CNBC Indonesia from 12 institutions estimates that February 2023 inflation will rise to 5.40% on an annual basis (yoy), from 5.28% the previous month.

Meanwhile, on a monthly basis (mtm) inflation is expected to ease in February to 0.11% from January which was recorded at 0.34%.

Historically, inflation in February (mtm) has indeed been sluggish because food prices have usually soared in December and January. The average February inflation (mtm) in the last five years was only 0.09%. In February 2019 and 2022 there was even deflation.

For the record, in this February period, the harvest season begins. However, this harvest season was hampered by bad weather in a number of areas. As a result, the foodstuffs group, especially rice, became the biggest contributor to inflation in February.

(ha/ha)