Consumer Price Index: After Five Months of Deflation, Indonesia Finally Sees Inflation Again
Between May and September 2024, Indonesia had experienced a (remarkable) five-month deflation streak, driven by contracting food prices. And so, we were certainly quite interested in the latest consumer price index (CPI) data that were released by the Statistical Office of Indonesia (Badan Pusat Statistik, BPS) on 1 November 2024.
What do the latest data show? Well, they show that this deflation streak is over. In October 2024, Indonesian inflation was recorded the rate of 0.08 percent month-on-month (m/m). While this is in stark contrast to 0.12 percent (m/m) of deflation seen in September 2024, it can certainly be argued that 0.08 percent (m/m) of inflation is still a somewhat modest inflation level for Indonesia in the month of October.
Table one shows that October brought higher inflation in 2021 and 2023, while the deflation rate seen in October 2022 was related to the unusually high base set in the preceding month. So, price pressures did remain soft in Indonesia in October 2024.
Despite the reappearance of inflation in October 2024, Indonesia’s annual headline inflation continued to ease (because October 2023 brought higher inflation). Annual inflation of Indonesia fell from 1.84 percent year-on-year (y/y) in September 2024 to 1.71 percent (y/y) in October 2024, which is the lowest headline inflation rate for Indonesia since October 2021 when the country was in the early stages of recovery from the COVID-19 crisis.
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Read the full article in the October 2024 edition of our monthly report. This report (an electronic report, PDF) can be ordered by contacting us through email and/or WhatsApp:
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