6-6-2023 (JAKARTA) Indonesia’s annual inflation has once again fallen within the target range set by the central bank, according to an announcement made by Statistics Indonesia (BPS) on Monday.
The country’s consumer price index recorded a year-on-year inflation rate of 4.00 percent in May, showing a decline compared to the previous month’s figure of 4.33 percent.
During a press conference, Pudji Ismartini, the BPS Deputy for Distribution and Services Statistics, highlighted that the inflation in May was primarily driven by price reductions in the clothing and footwear group, as well as the transportation group.
This controlled level of inflation has been achieved earlier than the target set by Bank Indonesia for the second semester.
Indonesia had been experiencing inflation above the target ceiling since June 2022, reaching 4.35 percent and peaking at 5.95 percent in September. This surge was a result of global economic uncertainties, which led to an increase in food and energy prices.
However, inflation has gradually eased due to the implementation of various policies by the central bank and the government. These measures included raising the benchmark interest rate by a total of 225 basis points.
The return of inflation to the target range is positive news for Indonesia’s economy and reflects the effectiveness of the implemented policies in curbing inflationary pressures. It provides greater stability and confidence in the country’s economic outlook moving forward.
