Indonesia's Inflation at 1.57% at the End of 2024, Lowest Since 1958

Indonesia's Statistics Agency (BPS) recorded that the annual inflation rate in December 2024 reached 1.57% (year-on-year/yoy).

The annual inflation rate in December 2024 was lower than in December 2023, which was 2.61% (yoy). According to *Katadata*, the year-to-date (ytd) inflation calculation for 2024 was the lowest since BPS first calculated inflation in 1958.

"At that time, inflation was only measured in Jakarta, while now the coverage has expanded to 150 cities in 38 provinces," said Pudji Ismartini, Deputy for Distribution and Service Statistics at BPS, in a press conference on Thursday (2/1/2025).

Pudji also explained that the lowest inflation previously recorded was in 2020, at 1.68%.

However, December 2024's inflation was slightly higher by 0.02 percentage points than November 2024's 1.55% (yoy). Based on monthly calculations, Indonesia's inflation reached 0.44% (month-to-month/mtm) in December 2024, higher than December 2023's 0.41% (mtm).

The largest driver of annual inflation was the food, beverage, and tobacco group, with inflation at 1.90% and a contribution of 0.55% (yoy) to overall inflation.

"The commodities with the largest contribution to inflation in this group were kretek cigarettes (0.13%) and cooking oil (0.11%)," said Pudji in an online broadcast.

Other commodities with significant contributions included rice, instant coffee, shallots, fresh fish, broiler chicken, and garlic. Other commodities outside the food, beverage, and tobacco group that also made significant contributions were gold jewelry and rice with side dishes, at 0.35% and 0.06%, respectively.

The expenditure group that experienced deflation was transportation, at -0.30% (yoy), with a contribution of 0.04%.

"This deflation was driven by deflation in airfare in December 2024," said Pudji.

Inflation occurred across all components in December 2024. Core inflation was 2.26%; government-administered inflation was 0.56%; and volatile inflation was 0.12%.

The increase in annual inflation also occurred alongside a rise in the consumer price index (CPI) from 100.15 in December 2023 to 106.80 in December 2024.