Year-on-year (YoY) inflation in January 2024 was reported at 2,57% or lower compared to annual inflation in January 2023 which reached 5,28%. The decline in YoY inflation in January 2024 was driven by increases in all sectors, except the energy sector and the information, communications and financial services sectors. The sectors that experienced the highest YoY inflation were the foodstuffs sector (6%), the food, beverage and tobacco sector (5,84%), and the personal care and other services sector (3,01%). YoY inflation in the education sector has experienced an even greater decline since September 2023.
YoY core inflation was 1,68% in January 2024, a decrease of 0,11% compared to the previous month. Annual core component inflation pressure continues to decline due to the prices of gold jewelry, granulated sugar, house contract costs, house rental costs and rice with side dishes. In contrast to YoY core inflation, price inflation regulated by the government increased by 0,02% from the previous month to 1,74% in January 2024. The increase in price inflation regulated by the government was driven by adjustments in kretek prices and air and inter-city transportation rates. city. YoY volatile price component inflation also increased by 0,49% to 7,22% in January 2024. The increase in the inflation value of the volatile price component was contributed by inflation in the commodities of rice, garlic, tomatoes, red chilies and purebred chicken meat. Thus, volatile price inflation has remained the main contributor to general inflation since September last year.
The MtM inflation rate for January 2024 was reported at 0,04% or decreased by 0,38% compared to the previous month. The low value of MtM inflation this month was driven by low price inflation regulated by the government and volatile price inflation. Price inflation regulated by the government experienced deflation of 0,48%, 0,87% lower than in December 2023. Deflation in the price component regulated by the government was caused by adjustments in air transportation rates after the Christmas and New Year holidays as well as a decrease in fuel oil (BBM) prices. ) as of January 1, 2024.
On the other hand, inflation in the volatile price component was also quite low at 0,01% or decreased by 1,41% compared to the previous month. Volatile price inflation MtM is influenced by price changes in the commodities of tomatoes, rice, shallots, fresh fish and purebred chicken meat. The ongoing rice inflation is influenced by the increase in the average price of milled dry grain, while the price of tomatoes has doubled on the market due to a decrease in tomato production and limited supply due to bad weather. Apart from that, high rainfall also reduces the supply of fresh fish. However, in accordance with the mean-reversion movement of the volatile price component, it is predicted that this component will experience deflation next month. Meanwhile, core inflation increased 0,06% this month to 0,20% driven by increases in gold jewelry prices, house rental costs and house contract costs.
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