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March inflation remains below BI target despite end of electricity discount, Idul Fitri
The country’s headline inflation hovered at 1.03 percent year-on-year in March, Statistics Indonesia (BPS) production undersecretary M. Habibullah said in a press conference on Tuesday.
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Weakening rupiah: A shopkeeper at a grocery stall attends to customers on June 1, 2024, at Rangkasbitung Market in Lebak, Banten. Prices have risen for several staple foods, including shallots from Rp 30,000 (US$1.77) to Rp 45,000 per kilogram and red chilis from Rp 30,000 to Rp 50,000 per kg. (Antara/Muhammad Bagus Khoirunas)
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ndonesia’s consumer price index (CPI) in March had risen to its highest reading since December last year after the government ended the electricity discount that had subdued prices for the past two months along with a seasonal push from the Idul Fitri holiday.
The country’s headline inflation hovered at 1.03 percent year-on-year (yoy) in March, Statistics Indonesia (BPS) production undersecretary M. Habibullah said in a press conference on Tuesday, while also noting that the monthly inflation reading in March had increased by 1.65 percent.
The figure indicates a rebound in the price index after a decline of 0.09 percent in February and an increase of just 0.76 percent in January, with the former marking the first annual deflation in 25 years and the latter marking the lowest inflation rate since January 2000.
“The CPI has increased from 106.13 in March 2024 to 107.22 in March 2025,” Habibullah said.
The rate of CPI increase, however, was still below this year’s targets of 1.5 to 3.5 percent set by Bank Indonesia (BI).
The rise in monthly inflation was attributed primarily to prices under categories of housing, water, electricity and household fuel, which contributed 1.18 percentage points to the monthly headline figure with normalization of electricity prices as the key factor.
Read also: Inflation hits decades low amid electricity discount, waning spending power
