Indonesia's Inflation Rate Falls in April 2023, Approaching BI's Target

According to a report by the Central Bureau of Statistics (BPS), Indonesia experienced a 4.33% year-on-year (yoy) inflation rate in April 2023.

This inflation rate continues the downward trend observed since March 2023 and approaches Bank Indonesia's (BI) target of keeping inflation within a range of 3 ± 1% this year.

BPS noted that the commodities contributing significantly to the annual inflation in April 2023 were rice, shallots, chicken eggs, kretek cigarettes, fresh fish, white cigarettes, kretek filter cigarettes, household fuel, house rent/contract, electricity tariffs, and domestic helper wages.

The inflation rate was also influenced by price increases in city transportation fares, air transportation fares, intercity transportation fares, cars, gasoline, academy/university tuition fees, rice with side dishes, and gold jewelry.

Meanwhile, commodities contributing to deflation or a year-on-year price decrease were chicken meat, cooking oil, and mobile phones.

Looking at expenditure groups, the highest inflation in April 2023 occurred in the transportation sector. The details are as follows:

* Transportation: 11.96% (yoy)
* Personal care and other services: 4.67% (yoy)
* Food, beverages, and tobacco: 4.58% (yoy)
* Food and beverage service/restaurants: 3.79% (yoy)
* Household equipment, supplies, and routine maintenance: 3.27% (yoy)
* Education: 2.75% (yoy)
* Health: 2.6% (yoy)
* Housing, water, electricity, and household fuel: 2.53% (yoy)
* Recreation, sports, and culture: 2.38% (yoy)
* Clothing and footwear: 1.8% (yoy)

Only one expenditure group experienced a year-on-year deflation in April 2023: the information, communication, and financial services sector, with a deflation of 0.25% (yoy).