Bank Indonesia Confident in Meeting Inflation Target by Year-End 2024

Jakarta, VIVA – Bank Indonesia (BI) stated that the Consumer Price Index (CPI) inflation for November 2024 remained well-maintained, supported by consistent monetary policy and strengthened synergy among stakeholders, including central and regional governments.

"November 2024 CPI inflation remained within the target range of 2.5 percent plus or minus one percent," said BI Executive Director of the Communication Department, Ramdan Denny Prakoso, in Jakarta on Tuesday (Dec 2).

According to data from the Central Statistics Agency (BPS), November 2024 CPI inflation was recorded at 0.30 percent month-to-month (mtm), resulting in an annual decrease to 1.55 percent year-on-year (yoy) from 1.71 percent (yoy) in the previous month.

"This controlled inflation is the result of consistent monetary policy and close synergy between Bank Indonesia and the central and regional governments through the Central and Regional Inflation Control Teams. This collaboration includes initiatives like the National Movement for Food Inflation Control in various regions," he explained.

Looking ahead, Bank Indonesia is confident that inflation will remain within the target range of 2.5 percent plus or minus one percent in both 2024 and 2025.

Prakoso further highlighted that core inflation remained stable in November 2024, recorded at 0.17 percent (mtm), lower than the previous month's rate of 0.22 percent (mtm).

Core inflation was influenced by rising global commodity prices, amid inflation expectations that remained within the target range. The main contributors to November 2024 core inflation included gold jewelry, cooking oil, and powdered coffee.

On an annual basis, November 2024 core inflation stood at 2.26 percent (yoy), slightly up from the previous month's 2.21 percent (yoy).

Meanwhile, the volatile food group experienced inflation of 1.07 percent (mtm) in November 2024, increasing from the previous month's deflation of 0.11 percent (mtm).

Volatile food inflation was primarily driven by rising prices of shallots, tomatoes, and broiler chicken meat. The increase in horticultural commodity prices was attributed to the ongoing planting season, while the rise in broiler chicken meat prices was influenced by higher costs of Day-Old Chick (DOC) seeds.

Annually, the volatile food group experienced deflation of 0.32 percent (yoy), down from 0.89 percent (yoy) inflation in the previous month.

Looking ahead, volatile food inflation is expected to remain under control, supported by inflation control efforts by the Central and Regional Inflation Control Teams (TPIP and TPID) through the National Movement for Food Inflation Control (GNPIP) across various regions.

For the administered prices group, November 2024 inflation was recorded at 0.12 percent (mtm), an increase from the previous month's deflation of 0.25 percent (mtm).

Administered price inflation was primarily driven by machine-rolled clove cigarettes (SKM) and air transport tariffs, following the continued transmission of higher tobacco excise rates and increased public mobility.

Annually, administered price inflation stood at 0.82 percent (yoy), up from 0.77 percent (yoy) in the previous month.