JAKARTA - Consumer Price Index (CPI) inflation is agreed to be in the range of 3% ± 1% this year. The government and Bank Indonesia (BI) agreed on the CPI inflation level at the High Level Meeting of the TPIP Central Inflation Control Team (HLM), Monday (20/2).

Erwin Haryono, Executive Director Head of the BI Communication Department, said that the Government and BI have decided on five strategic steps to ensure consistent CPI inflation. Later this strategy will be pursued by strengthening the center to the regions.

The five strategies include strengthening policy coordination to maintain macroeconomic stability and encourage growth, to control inflation in the volatile foods (VF) component, especially on religious holidays in the range of 3%-5%. In addition, strengthening domestic food security through accelerating the food storage program and expanding inter-regional cooperation. Strengthen the availability of food data to formulate inflation policies, as well as synergize communications to manage people's inflation expectations.

CPI inflation in December 2022 was 5.51% year on year (yoy). This achievement is below the consensus forecast of 6.5% yoy after the price adjustment for fuel oil (BBM) in September 2022.

Airlangga Hartarto, Coordinating Minister for the Economy chaired the HLM TPIP, which was attended by, among others, Perry Warjiyo, Governor of BI, and Sri Mulyani, Minister of Finance. (LK/LM)