2022 Inflation Decreased, Become Evidence of Indonesia’s Post-Pandemic Awakening

Inflation 2022

Inflation is something that the Indonesian government was afraid of in 2022. Fortunately, the 2022 inflation rate declined faster at the level of 5.51%, lower than Bank Indonesia’s prediction of reaching 6.5%.

This was conveyed by the Governor of Bank Indonesia Perry Warjiyo who announced that Indonesia’s inflation rate in 2022 would decline faster than forecast at the level of 5.51%.

“Inflation has decreased faster than expected. Consumer Price Index (CPI) inflation at the end of 2022 was recorded at 5.51% (YoY), much lower than the forecast according to the Consensus Forecast of 6.5% (YoY) after fuel price adjustments Subsidized oil (BBM) in September 2022,” he said in a press conference, Thursday (19/1/2023).

He further said core inflation was also below Bank Indonesia’s estimate. Originally, core inflation was projected to reach 4.61%, but at the end of 2022, this inflation will be at the level of 3.36%.

“Likewise, core inflation was recorded low at the end of 2022, namely 3.36% (YoY), much lower than Bank Indonesia’s forecast of 4.61% (YoY),” he continued.

The decline in CPI and core inflation was the result of close cooperation between Bank Indonesia and the central and regional governments.

“The decline in CPI and core inflation was the result of very close coordination between the Government and Bank Indonesia through Bank Indonesia’s front-loaded, pre-emptive and forward-looking monetary policy response, supported by control of volatile food inflation through the National Movement. Food Inflation Control (GNPIP),” he explained.

In 2023, Perry believes core inflation and CPI will be able to be pulled back in the range of 3.0 ± 1%. According to him, coordination and cooperation between BI and the government will continue to be carried out to ensure inflation control is on target.

Inflation is indeed a real threat to the world in 2022. President Joko Widodo (Jokowi) even reminded regional governments and regional heads to closely monitor the consumer price index (CPI) in their respective regions.

Moreover, after the September 2022 price adjustment for fuel oil (BBM),