Jakarta, LPEM FEB UI – Year-on-year (YoY) inflation news in August 2023 was reported at 3,27% or an increase of 0,19% compared to annual inflation in July 2023. This rising inflation shows that general YoY inflation has changed after the decline for 10 months since September last year. YoY inflation occurred in all sectors except the information, communications and financial services sector (-0,22%), which has consistently experienced deflation for the last 21 months. The sectors with the highest YoY prices were the energy sector (9,55%) and transportation (9,65%). YoY inflation for the energy sector has penetrated double digits since
September last year.
YoY core inflation was 2,18% in August 2023, a decrease of 0,25% compared to the previous month. News that price inflation regulated by the government YoY has also decreased, namely 8,05% in August 2023 compared to 8,42% in July 2023. On the other hand, the volatile price component YoY appears to have increased, with a figure of 2,42% in August 2023 or an increase of 2,46% compared to the previous month.
The MtM inflation rate for August 2023 was reported at 0,02% or decreased by 0.23% compared to the previous month. This decline was driven by price components regulated by the government and volatile prices. Price inflation regulated by the MtM government has decreased, namely from 0,44% in July 2023 to -0,02% in August 2023. Commodities that contribute to deflation in this component are household fuel and air force tariffs with their respective values of 0,01%. This was due to a decrease in the price of non-subsidized liquid petroleum gas (LPG) at agent level and the normalization of air transportation rates after the school holiday period.
We predict that YoY inflation in September 2023 will still be around 3%. The YoY inflation rate will be lower with the high YoY inflation rate in the second half of last year. Thus, inflation will still be within the BI inflation target range for 2023.
Complete analysis
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