Core inflation rose to 3.31% (YoY) in October 2022.

Bank Indonesia (BI) reports that inflation was lower than initially projected, consistent with the impact of fuel price adjustments on volatile food and administered prices being less than initially anticipated.

"Meanwhile, core inflation remained low due to the lower spillover effect from the fuel price adjustments and the lack of strong demand-side inflationary pressure," as reported in BI's press release on Tuesday (1/11/2022).

With these developments, annual headline inflation was recorded at 5.71% (year-on-year/yoy), lower than the initial projection and the previous month's inflation of 5.95% (yoy).

This decrease is in line with the increasingly close policy synergy between the Central and Regional Governments, Bank Indonesia, and various other strategic partners through the Central and Regional Inflation Control Team (TPIP-TPID) and the National Movement for Food Inflation Control (GNPIP) in lowering the inflation rate, including controlling the lingering impact of fuel price adjustments.

Meanwhile, core inflation in October was 0.16% (month-to-month/m-to-m), down from 0.3% (m-to-m) the previous month. Annual core inflation last month was 3.31% (yoy), higher than the previous month's 3.21% (yoy). Year-to-date (YTD) core inflation for the January-October 2022 period was 2.97%.

"Looking ahead, core inflation is projected to remain controlled due to the declining spillover effect of fuel price adjustments amid sustained demand, and the implemented inflation control measures," according to the press release.

BI is committed to lowering currently overshooting inflation expectations and ensuring that core inflation returns to the 3.0% +/- 1% target earlier, namely in the first half of 2023.