Annual Core Inflation Reaches Highest Level in September 2022

The core Consumer Price Index (CPI) stood at 110.62 in September 2022, up 0.3% from the previous month.

This means that the core inflation rate reached 0.3% month-on-month (mom) in September 2022.

Cumulatively, from January to September 2022, the core component experienced inflation of 2.81% year-to-date (ytd).

Compared to September 2021, the core component in September 2022 experienced annual inflation of 3.21% year-on-year (yoy). This is the highest annual core inflation rate since the beginning of 2022, as shown in the graph.

Core inflation is a component of inflation that tends to be persistent and is influenced by fundamental factors, such as:

* Supply and demand interaction.
* External environment: exchange rate, international commodity prices, trading partner inflation.

On the other hand, the government-regulated price component experienced monthly inflation of 6.18% (mom) in September 2022. Cumulatively, from January to September 2022, this component experienced inflation of 11.99% (ytd) and annual inflation of 13.28% (yoy).

Meanwhile, the volatile component experienced a monthly deflation of 0.79% (mom) in September 2022. Cumulatively, from January to September 2022, this component recorded inflation of 5.23% (ytd) and annual inflation of 9.02% (yoy).

The following is the contribution of inflation by component in September 2022:

* Core component: 0.2%
* Government-regulated prices: 1.11%
* Volatile component: -0.14%