Indonesia's Inflation Rate Decreases in March 2023

According to the Central Bureau of Statistics (BPS) report, Indonesia experienced a 4.97% year-on-year (yoy) inflation rate in March 2023.

This inflation rate decreased compared to February 2023, although it remains significantly higher than the inflation rate in March three years prior, as shown in the graph.

The figure is also considerably higher than Bank Indonesia (BI)'s target of containing inflation within a range of 3 ± 1% this year.

According to BPS, the commodities that significantly contributed to the annual inflation in March 2023 were rice, chicken eggs, fresh fish, white cigarettes, filter kretek cigarettes, kretek cigarettes, bottled water, household fuel, house contracts, house rent, electricity tariffs, and domestic helper wages.

The inflation rate was also influenced by price increases in gasoline, diesel, cars, city transportation fares, air transportation fares, tuition fees, rice with side dishes, and oily cookies. The only commodities that experienced price decreases were chicken meat, tomatoes, and cooking oil.

In terms of expenditure groups, the largest price increase in March 2023 occurred in the transportation sector.

Here's a breakdown of the annual inflation rate by expenditure group, ordered from highest to lowest:

* Transportation: 13.72% (yoy)
* Food, beverages, and tobacco: 6.05% (yoy)
* Personal care and other services: 4.74% (yoy)
* Food and beverage services/restaurants: 4% (yoy)
* Household equipment, appliances, and routine maintenance: 3.72% (yoy)
* Education: 2.75% (yoy)
* Housing, water, electricity, and household fuel: 2.74% (yoy)
* Health: 2.65% (yoy)
* Recreation, sports, and culture: 2.54% (yoy)
* Clothing and footwear: 1.18% (yoy)

Only one expenditure group experienced a year-on-year deflation in March 2023: the information, communication, and financial services sector, with a deflation of 0.23% (yoy).