TEMPO.CO, Jakarta - Bank Indonesia (BI) said that inflationary pressure has gone down and is now within the target of 3 plus or minus 1 percent. Consumer Price Index (CPI) inflation in June 2023 was recorded at 3.52 percent year on year (yoy), which is faster than what the central bank estimated.

"The decline in inflation occurred in all groups," BI senior deputy governor Destry Damayanti said in a joint working meeting of the DPR's Budget Agency at the DPR Building in Central Jakarta on Monday, July 10.

June 2023 core inflation was recorded at 2.58 percent (yoy), lower than May's 2.66 percent. This is in line with the decline of global commodity prices and the low expectations of inflation.

Meanwhile, inflation in the volatile foods group was recorded at 1.20 percent yoy, down from the previous month's inflation of 3.28 percent yoy. Administered prices inflation also decreased from 9.52 percent to 9.21 percent yoy.

"Spatially, the June 2023 CPI inflation rate in most regions has also been below 4 percent," Destry said.

According to Destry, inflation is within the target as a positive result of the consistency of monetary policy and the tight synergy of controlling inflation. The central bank, she added, continues to strengthen the National Movement for Controlling Food Inflation (GNPIP) in various regions, which has led to a reduction in food inflation.

"With consistency, innovation and synergy, BI believes inflation will remain under control within the target of 3 plus minus 1 percent in the remainder of 2023," she added.

Meanwhile, Minister of Finance Sri Mulyani Indrawati said the inflation rate in Indonesia showed a fairly good trend. "Compared to many other countries where inflation has started to fall, Indonesia is still in a relatively good situation with moderately low inflation."

MOH. KHORY ALFARIZI

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