Primary Food Prices Continue to Fall, August Deflation Again
The Badan Pusat Statistik (BPS) reported that in August 2024, there was a monthly (m-t-m) deflation (a decrease in the consumer price index/CPI) of 0.03 percent.
This means that for 4 consecutive months, there has been deflation or a decrease in the prices of goods and services. However, the August 2024 deflation was much lower compared to July 2024 at 0.18 percent and June 2024 at 0.08 percent, but the same as the May 2024 deflation of 0.03 percent.
During a press conference in Jakarta on Monday (2/9/2024), the Deputy for Distribution & Service Statistics at BPS, Pudji Ismartini, stated that in addition to deflation, there was also a decrease in the CPI from 106.09 (July 2024) to 106.06 (August 2024).
Pudji explained that the August 2024 CPI experienced m-t-m deflation, primarily because the inflation of food or primary/staple goods (volatile food) fell to 3.04 percent year-on-year (y-o-y) from 3.36 percent in July 2024 (y-o-y).
"The expenditure group that contributed the most to the deflation was food, beverages, and tobacco. This group experienced a 0.52 percent deflation and contributed 0.15 percent to the deflation," she said.
The commodities that predominantly contributed to the deflation were those with volatile prices, such as shallots, broiler chicken, tomatoes, and chicken eggs. Staple goods made the largest contribution to the CPI or inflation.
With the deflation in August 2024, the annual (y-o-y) inflation rate became 2.12 percent, decreasing compared to the July 2024 annual inflation rate of 2.13 percent.
Similarly, the year-to-date (y-t-d) inflation in August 2024 decreased to 0.87 percent from 0.89 percent in July 2024.
