June Inflation Rises to 0.14%: Food and Beverage Group Drives Price Increase

Inflation 2022

The latest report from the Central Statistics Agency (BPS) reveals a notable increase in inflation during the monthly period of June, with a rate of 0.14%, compared to the previous month of May 2023, which stood at 0.09%.

Pudji Ismartini, the Deputy of Distribution and Services Statistics at BPS, highlighted that June 2023 witnessed a month-to-month inflation rate of 0.14%, signifying a rise in the consumer price index from 114.84 in May 2023 to 115.00 in June 2023.

In her statement at the BPS office in Jakarta on Monday (3/7/2023), Pudji stated, “On a year-on-year basis, inflation stands at 3.52%, and on a year-to-date basis, inflation reaches 1.24%.”

Examining the series on a monthly basis, June’s inflation rate appears higher compared to the previous month of May 2023, which recorded an inflation rate of 0.09%. However, it is worth noting that the current inflation rate is lower than the corresponding month of the previous year, June 2022, which experienced an inflation rate of 0.61%.

The food, beverage, and tobacco group emerged as the largest contributor to the monthly inflation in June 2023, accounting for an inflation rate of 0.39% and a contribution of 0.10% to the overall inflation figure.

Various commodities made substantial contributions to the month-to-month inflation, including broiler chicken meat with a contribution of 0.06%, air transport fares with a contribution of 0.04%, chicken eggs with a contribution of 0.02%, and house rentals, garlic, filtered clove cigarettes, and cucumbers, each contributing 0.01%.

However, it is important to note that the transportation expenditure group experienced deflation, primarily due to lower prices of gasoline and diesel fuel.

Pudji further mentioned that among the 90 cities surveyed, a total of 78 cities experienced inflation. Out of these 78 cities, 48 cities had an inflation rate higher than the national average, while the remaining 30 cities had inflation rates below the national average. Additionally, 12 cities observed deflationary trends.

This recent inflation report provides valuable insights into the state of the economy and consumer purchasing power, highlighting the impact of various factors on price levels and regional disparities in inflation rates.