Indonesia's Inflation Reaches Approximately 2% in September 2023

According to a report by the Central Statistics Agency (BPS), Indonesia experienced a 2.28% year-on-year (yoy) inflation rate in September 2023. This means that the general price of goods and services in the country in September of this year was 2.28% higher than in September of last year.

Last September, national commodity prices were at a high level. This was due to the government's increase in subsidized fuel prices in September 2022. The price of Pertalite subsidized gasoline increased from Rp7,660 to Rp10,000 per liter, and the price of subsidized diesel fuel rose from Rp5,150 to Rp6,800 per liter. This resulted in price increases for many commodities.

This year, the commodities that significantly contributed to the September 2023 annual inflation were rice, raw tofu, garlic, broiler chicken, white cigarettes, potatoes, fresh fish, filter kretek cigarettes, kretek cigarettes, and piped water tariffs.

The annual inflation rate in September 2023 was also influenced by price increases in non-foreman labor, house rent, house contracts, domestic helper wages, cars, train fares, senior high school tuition fees, university tuition fees, rice with side dishes, and gold jewelry.

Meanwhile, commodities that contributed to deflation or a year-on-year price decrease in September 2023 included red chilies, cayenne peppers, green chilies, red onions, chicken eggs, pork, cooking oil, liquid/dish soap, airfare, and cell phones.

Looking at expenditure groups, Indonesia's highest year-on-year inflation in September 2023 occurred in the food, beverage, and tobacco sector. The details are as follows:

* Food, beverages, and tobacco: 4.17% (yoy)
* Personal care and other services: 3.68% (yoy)
* Food and beverage services/restaurants: 2.40% (yoy)
* Health: 2.14% (yoy)
* Education: 2.08% (yoy)
* Household equipment, appliances, and routine maintenance: 1.97% (yoy)
* Recreation, sports, and culture: 1.58% (yoy)
* Housing, water, electricity, and household fuel: 1.26% (yoy)
* Transportation: 0.99% (yoy)
* Clothing and footwear: 0.98% (yoy)
* Information, communication, and financial services: 0.06% (yoy).