Indonesia's Inflation Slowing, Volatile Food Prices Drop

2 March 2023 01:44

Inflation in Indonesia has slowed for the month of February led by the drop in volatile food prices. The Indonesian Central Bureau of Statistics (BPS) announced that in February 2023 inflation on a monthly basis slowed to 0.16 percent. This marks a slowdown in monthly inflation in January which came in at 0.3 percent.

However, on an annual basis, inflation rose to 5.47 percent but on year to date basis prices have only gone up 0.5 percent. The BPS stated that the slowdown in inflation was largely due to a drop in volatile food prices.

For example, in February chili prices fell by over 7 percent. The price of chicken meat fell by over 4 percent while prices of eggs fell by 3 percent. Meanwhile, out of the 90 cities surveyed, 27 cities experience deflation or a drop in prices.