Indonesia’s inflation rate in November 2024 remained steady, staying within the target range of 2.5±1%. The Consumer Price Index (CPI) showed a slight increase of 0.30% month-to-month, but on a yearly basis, inflation dropped to 1.55%, down from 1.71% in October.

This stable inflation rate is a result of effective monetary policies and the collaboration between Bank Indonesia and the government. Both institutions have worked closely with regional authorities through the Inflation Control Teams (TPIP and TPID) and the National Movement to Control Food Inflation (GNPIP).

Core inflation, which excludes volatile food and administered prices, remained low. It increased by just 0.17% month-to-month, down from 0.22% in October. The increase was largely due to rising global commodity prices, including gold, cooking oil, and coffee. On a yearly basis, core inflation stood at 2.26%, slightly higher than the previous month's 2.21%.

Inflation in the volatile food category showed a sharp rise. It increased by 1.07% month-to-month, a significant change from the deflation of 0.11% seen in October. Key contributors included price hikes in shallots, tomatoes, and chicken meat. The rise in chicken prices was particularly driven by higher costs for Day-Old Chicks (DOC).

Despite the month-to-month increase, the volatile food group showed a year-on-year deflation of 0.32%. This was an improvement from the previous month, where inflation had been at 0.89%.

Prices in the administered category also rose in November. This group saw a month-to-month increase of 0.12%, compared to a deflation of 0.25% in October. The rise in prices was mainly driven by increased costs for clove cigarettes (SKM) and airfares, which were influenced by higher tobacco excise taxes and greater public mobility.

Administered prices had a year-on-year inflation rate of 0.82%, a slight increase from the previous month’s 0.77%. The main factors were again the higher costs of cigarettes and airfares.

Bank Indonesia remains optimistic that inflation will continue to stay within the target range of 2.5±1% in both 2024 and 2025. The ongoing collaboration between the central bank, government, and local authorities will be crucial in maintaining this stability.