JAKARTA – Bank Indonesia (BI) is optimistic that the inflation of Consumer Price Index (CPI) will arrive at 2.5%-3.5% year-on-year (yoy) this year, following a solid synergy with government (central and regional). In 2023, CPI inflation was recorded at 2.61% yoy.

In the press release quoted Thursday (4/1), Erwin Haryono, Assistant Governor of Department of Communication of BI, said that the CPI inflation in December 2023 was recorded at 0.41% month-to-month (mtm). “This rate led to CPI 2023 arriving at 2.61% yoy, lower than CPI inflation in 2022 of 5.51% yoy,” he explained.

According to Haryono, this rate is made possible by a strong synergy between BI and government in the Central and Regional Inflation Control Team.

It is mentioned that low CPI inflation in December 2023 is due to core inflation, as well as volatile food inflation that is under control. Core inflation in December 2023 was seen at 0.14% mtm, indicating not much difference compared to core inflation in November 2023 of 0.12% mtm. The volatile food inflation, in the meantime, declined to 1.42% mtm from 1.72% mtm in November 2023.

In addition, BI booked core inflation of CPI of 2023 at 1.80% yoy, in line with the consistent implementation of interest policy and Rupiah currency rate stabilisation. (LK/ZH)