5 Commodities Contributing to Indonesia's Monthly Deflation in September 2024

The Central Statistics Agency (BPS) reported that Indonesia experienced a monthly deflation of -0.12% (month-to-month/mtm) in September 2024. This marks the fifth consecutive month of deflation since the beginning of the year.

According to the Acting Head of BPS, Amalia Adininggar Widyasanti, the deflation over the past five months has been influenced by a decrease in commodity prices.

"The factor influencing deflation, or the price decrease, is the supply side. The deflation is mainly contributed by the decrease in food prices," said Amalia in a press conference on Tuesday (1/10/2024).

Based on the commodities, red chilies were the largest contributor to deflation in September 2024, at -0.09%.

This was followed by chili peppers (-0.08%), gasoline (-0.04%), and chicken eggs and chicken meat, each contributing -0.02% to the deflation.

"Horticultural and livestock products experienced price increases in previous months, but are now declining as they return to stability," said Amalia.

In September 2024, monthly deflation occurred in 24 provinces, while 14 other provinces experienced monthly inflation.

The highest monthly inflation was recorded in North Maluku Province at 0.56% (mtm). The deepest monthly deflation occurred in West Papua Province at -0.92% (mtm).