Indonesia's Inflation Continues to Ease, Reaching 4% in May 2023

According to a report by the Central Bureau of Statistics (BPS), Indonesia experienced a 4% year-on-year (yoy) inflation rate in May 2023. The rate continued to slow since March 2023, marking the lowest inflation since the beginning of the year.

The BPS noted that the commodities contributing significantly to the annual inflation in May 2023 were rice, chicken eggs, garlic, bottled water, white cigarettes, kretek filter cigarettes, kretek cigarettes, electricity tariffs, house rent, household fuel, house contracts, and domestic helper wages.

The May 2023 inflation rate was also influenced by price increases in city transportation, intercity transportation, cars, solar fuel, gasoline, academy/university fees, rice with side dishes, and gold jewelry.

Meanwhile, commodities contributing to deflation or a year-on-year price decrease in May 2023 were chicken meat, beef, red chilies, cayenne peppers, cooking oil, and mobile phones.

Looking at expenditure groups, the highest inflation in May 2023 occurred in the transportation sector. The details are as follows:

* Transportation: 10.62% (yoy)
* Personal care and other services: 4.48% (yoy)
* Food, beverages, and tobacco: 4.27% (yoy)
* Food and beverage service/restaurants: 3.38% (yoy)
* Household equipment, tools, and routine maintenance: 3.03% (yoy)
* Education: 2.75% (yoy)
* Health: 2.52% (yoy)
* Housing, water, electricity, and household fuel: 2.48% (yoy)
* Recreation, sports, and culture: 2.18% (yoy)
* Clothing and footwear: 1.54% (yoy)

Only one expenditure group experienced a year-on-year deflation in May 2023, namely the information, communication, and financial services sector, with a deflation of 0.27% (yoy).