{
    "success": true,
    "data": {
        "id": 1582285,
        "msgid": "bps-optimistic-inflation-returns-to-normal-in-april-following-low-base-effect-1772470655",
        "date": "2026-03-02 23:25:13",
        "title": "BPS optimistic inflation returns to normal in April following low base effect",
        "author": "",
        "source": "ANTARA_ID",
        "tags": "",
        "topic": "Economy",
        "summary": "Indonesia's Central Bureau of Statistics (BPS) projects year-on-year inflation will normalise in April 2026 once the low base effect dissipates. The elevated inflation readings of 3.55 per cent in January and 4.76 per cent in February 2026 are largely attributed to comparisons with the depressed price levels of early 2025, when a 50 per cent electricity tariff discount implemented by the government induced deflation.",
        "content": "<p>Jakarta \u2014 The Deputy of Statistics Distribution and Services at\nIndonesia\u2019s Central Bureau of Statistics (BPS), Ateng Hartono, projects\nthat year-on-year inflation will return to normal levels in April 2026\nonce the low base effect concludes.<\/p>\n<p>He stated that this effect triggered surges in year-on-year inflation\nduring January-February 2026 and is expected to end by March 2026.<\/p>\n<p>\u201cThe low base effect will continue to impact year-on-year inflation\nin March, but it is possible it will end in March as well, so that in\nApril 2026 the inflation figure will stabilise again with no low base\neffect,\u201d he said in Jakarta on Monday.<\/p>\n<p>Ateng explained that the low base effect phenomenon occurred due to\ngovernment incentive policies implemented in the previous year.<\/p>\n<p>During January-February 2025, the government provided a 50 per cent\nelectricity tariff discount for residential customers on a broad scale.\nThis massive discount significantly suppressed the consumer price index\n(CPI), pushing the national economy into deflation at that time. The low\nCPI position then became the reference point for calculating inflation\nthis year.<\/p>\n<p>\u201cThe decline in CPI caused the price level in January and February of\n2025 to fall below the normal trend pattern,\u201d said Ateng.<\/p>\n<p>He explained that the impact of the excessively low inflation rate in\nearly 2025, which even resulted in deflation due to the electricity\ntariff discount policy, is acutely felt when comparing CPI year-on-year\nin the same months in early 2026.<\/p>\n<p>Because the base index for comparison from the previous year is too\nsmall and not operating within the normal trend, the increase in the\npercentage value of year-on-year inflation this year automatically rises\nsignificantly. This caused inflation in January and February 2026,\nrecorded at 3.55 per cent yoy and 4.76 per cent yoy respectively, to\nappear very high.<\/p>\n<p>\u201cNevertheless, price dynamics are broadly aligned with fundamental\ntrends. This means that in the coming months, starting in April and\nbeyond in 2026, we will return to the normal trend,\u201d said Ateng.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/bps-optimistic-inflation-returns-to-normal-in-april-following-low-base-effect-1772470655",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}