Indonesia's Monthly Inflation Rises in December 2022 Amidst Christmas and New Year Celebrations

The Central Statistics Agency (BPS) reported a monthly inflation rate of 0.66% (month-on-month/mom) in December 2022, with the consumer price index (CPI) rising to 113.59.

Thus, the inflation rate for the January-December 2022 period reached 5.51% (year-to-date/ytd).

Core monthly inflation reached 0.22% (mom) in December 2022, and cumulatively reached 3.36% (ytd) during January-December 2022.

"School holidays, the 2022 Christmas and 2023 New Year celebrations, which boosted demand for food and transportation commodities, were the triggers for December 2022 inflation," said BPS Head Margo Yuwono in an online press conference on Monday (2/1/2022).

In December 2022, the food, beverages, and tobacco expenditure group experienced the highest inflation, namely 1.57% (mom) with a contribution of 0.4%.

The next highest inflation occurred in the housing, water, electricity, and household fuel expenditure group at 0.63% (mom) with a contribution of 0.12%; and the transportation expenditure group at 0.45% (mom) with a contribution of 0.06%.

On the other hand, the information, communication, and financial services expenditure group experienced a monthly deflation of 0.06% (mom).

December 2022's monthly inflation was the highest in the last three months, since the government raised the price of subsidized fuel (BBM) in September 2022.

December 2022's monthly inflation was also the highest compared to December 2020, which was only 0.45% (mom), and December 2021, which was 0.47% (mom).

Of the 90 cities surveyed by BPS, the highest inflation occurred in Bandung City, at 2.04% (mom), while the lowest was in Sorong at 0.01% (mom).