Central Bank: Indonesia’s Inflation in 2021 Will Remain Low
REPUBLIKA. CO. ID, JAKARTA — The Central Statistics Agency (BPS) stated that the Consumer Price Index (CPI) inflation in February 2021 is 0. 10 percent (month to month / mtm). This value is lower than the previous month’s inflation of 0. 26 percent (mtm).
This development was influenced by a slowdown in inflation in the core group and deflation in the volatile foods category. In the midst of rising inflation in the administered prices group.
Annually, CPI inflation for February 2021 was recorded at satu. 38 percent (yoy), down from last month’s inflation of 1. 55 percent (yoy). Head of the Communication Department of Bank Indonesia, Erwin Haryono, said that in the future BI will remain committed to maintaining price stability and strengthening policy coordination with the Government, both at the central and regional levels.
“In order to control inflation in 2021 according to the target range of 2-4 percent, ” he said in a press statement, Monday (1/3) night.
Core inflation in February 2021 was recorded at 0. 11 percent (mtm), down from inflation in January 2021 of 0. 14 percent (mtm). The decline in core inflation was driven by a menyampaikan in gold jewelry commodity inflation, in line with the continuing slowdown in global gold inflation.
Annually, core inflation was recorded to remain low at 1. 53 percent (yoy), slightly slowing down from inflation in January 2021 of 1. 56 percent (yoy). Core inflation that remains low is inseparable from the influence of weak domestic demand, maintained exchange rate stability, and consistency of Bank Indonesia policies in directing inflation expectations.
The volatile food category in February 2021 experienced deflation of 0. 01 percent (mtm), or lower than the previous month’s inflation of 1. 15 percent (mtm). This development was mainly due to deflation in the commodity meat and eggs of broilers.
The slowdown in inflation in the volatile foods category was driven by increased domestic supply and moderated increases in global food commodity prices, amidst weak domestic demand. Annually, inflation in the volatile food category was recorded at 1. 52 percent (yoy), down from the previous month’s inflation of 2. 82 percent (yoy).
The administered prices group in February 2021 experienced inflation of 0. 21 percent (mtm), an increase from the previous month’s deflation of 0. 19 percent (mtm). Inflation in this category was mainly driven by tariff increases on several toll roads and increases in air transport rates for several airlines. Annually, the administered prices component of inflation was 0. 66 percent (yoy), higher than the previous month’s inflation of 0. 34 percent (yoy).
Source: republika. co. id