Indonesia's Annual Inflation Rate in Early 2025 Below 1%, a New Record Low

The Central Bureau of Statistics (BPS) reported that Indonesia experienced annual inflation of 0.76% (year-on-year/yoy) in January 2025.

This inflation rate eased from the previous month and is a new record low in the last 25 years.

"According to BPS records, the annual inflation in January 2025 is the lowest since January 2000," said the Acting Head of BPS, Amalia Adininggar Widyasanti, in a press conference on Monday (3/2/2025).

Commodities contributing to inflation or the annual price increase in January 2025 were rice, chicken eggs, chicken meat, shallots, garlic, cayenne pepper, fresh fish, cooking oil, instant coffee, hand-rolled kretek cigarettes (SKT), machine-rolled kretek cigarettes (SKM), and machine-rolled white cigarettes (SPM).

Early-year inflation was also influenced by rising prices of house rent, domestic helper wages, cars, motorcycles, school fees, and gold jewelry.

Commodities contributing to deflation or the annual price decrease in January 2025 were tomatoes, spring onions, papaya, infant formula, electricity tariffs, liquid/dish soap, gasoline, and mobile phones.

Here's a breakdown of Indonesia's annual inflation rate by expenditure group in January 2025, ordered from highest to lowest:

* Personal care and other services: 7.27% (yoy)
* Food, beverages, and tobacco: 3.69% (yoy)
* Food and beverage services/restaurants: 2.47% (yoy)
* Education: 2.05% (yoy)
* Health: 1.84% (yoy)
* Clothing and footwear: 1.24% (yoy)
* Household equipment, appliances, and routine maintenance: 1.14% (yoy)
* Recreation, sports, and culture: 1.11% (yoy)
* Transportation: 0.76% (yoy)

Two expenditure groups experienced annual deflation or price decreases in January 2025: the housing, water, electricity, and household fuel group, which fell by 8.75% (yoy); and the information, communication, and financial services group, which fell by 0.30% (yoy).

In January 2025, 30 provinces experienced annual inflation and 8 other provinces experienced annual deflation. The highest inflation occurred in Papua Pegunungan at 4.55% (yoy), while the deepest deflation was in Gorontalo at 1.52% (yoy).