Education Sector Shows Highest Inflation in the Last Month of July 2023

The Central Statistics Agency (BPS) recorded inflation of 0.21% (month-to-month/m-to-m) in July 2023. Meanwhile, year-on-year (yoy) inflation was 3.08%.

According to CNN Indonesia, BPS Deputy for Distributive Statistics and Services, Pudji Ismartini, stated that this inflation increase was caused by rising food prices and school fees throughout the previous month.

This is evident in the highest spending group, education, which recorded 0.66% (m-to-m). This group contributed 0.04% to national inflation. BPS also noted that inflation in this group was due to increased school fees for elementary, junior high, and senior high schools.

Second, transportation, at 0.58%, had a larger contribution to national inflation at 0.08%. This was caused by increased airfare due to the school holiday period.

"High inflation in the transportation group tends to occur during major holidays and national holidays, such as Ramadan and Eid al-Fitr, Christmas and New Year holidays, and school holidays," said Pudji during a press conference on Tuesday (1/8/2023).

Third, food, beverages, and tobacco at 0.22%, contributed 0.06% to national inflation.

The group experiencing a decrease in the index was information, communication, and financial services at -0.02%.

BPS recorded year-on-year (yoy) inflation in July 2023 at 3.08%, and year-to-date (y-t-d) inflation in July 2023 at 1.45%.

The following are the inflation rates (m-to-m) by expenditure group in July 2023:

* Education: 0.66%
* Transportation: 0.58%
* Food, Beverages, and Tobacco: 0.22%
* Health: 0.19%
* Clothing and Footwear: 0.18%
* Recreation, Sports, and Culture: 0.17%
* Food and Beverage Services/Restaurants: 0.15%
* Household Furnishings, Equipment, and Routine Maintenance: 0.05%
* Housing, Water, Electricity, and Household Fuel: 0.02%
* Personal Care and Other Services: -0.01%
* Information, Communication, and Financial Services: -0.02%

(See also: Indonesia's Inflation Eases in July 2023, Lowest Since the Beginning of the Year)