BI: April Inflation Drops to 2.42 Percent Thanks to Policies and Synergy

Jakarta (ANTARA) - Bank Indonesia (BI) stated that the consumer price index (CPI) inflation in April 2026, which declined or eased to 2.42 percent (year-on-year), compared to the previous month, is the result of consistent monetary policy and close synergy among stakeholders. BI, together with the central government and regional governments, is part of the Central and Regional Inflation Control Teams (TPIP and TPID). In addition, the controlled inflation is also supported by the strengthening implementation of the national food security programme. “Going forward, Bank Indonesia is confident that inflation will remain controlled within the target range of 2.5±1 percent (1.5-3.5 percent range) in 2026 and 2027,” said BI’s Executive Director of the Communications Department, Ramdan Denny Prakoso, in his statement in Jakarta on Monday. Based on data from the Central Statistics Agency (BPS) released on Monday (4/5), the CPI in April 2026 recorded inflation of 0.13 percent on a monthly basis (month-to-month/mtm), so on an annual basis, the CPI experienced inflation of 2.42 percent (year-on-year/yoy) or lower than the previous month’s realisation of 3.48 percent (yoy). Core inflation in April 2026 was recorded at 0.23 percent (mtm), higher than the previous month’s realisation of 0.13 percent (mtm). The development of core inflation was driven by cooking oil commodities in line with the increase in global crude palm oil (CPO) prices, amid inflation expectations that remain controlled. On an annual basis, core inflation in April 2026 was recorded at 2.44 percent (yoy), down from the previous month’s realisation of 2.52 percent (yoy). Furthermore, the volatile food group in April 2026 experienced deflation of 0.88 percent (mtm), lower than the previous month’s inflation of 1.58 percent (mtm). The deflation in the volatile food group was mainly contributed by broiler chicken meat, broiler eggs, and various types of chillies in line with the normalisation of demand after the National Religious Holiday (HBKN) of Eid al-Fitr and the ongoing peak harvest in production centres. On an annual basis, the volatile food group experienced inflation of 3.37 percent (yoy), lower than the previous month’s realisation of 4.24 percent (yoy). BI stated that going forward, volatile food inflation is expected to remain controlled, supported by close synergy between Bank Indonesia and TPIP and TPID as well as the strengthening implementation of the Inflation Control and Prosperous Food Movement (GPIPS). Meanwhile, the administered prices group in April 2026 experienced inflation of 0.69 percent (mtm), higher than the previous month’s realisation of 0.31 percent (mtm). Inflation in the administered prices group was mainly contributed by air transport tariffs, petrol, and household fuels in line with the increase in aviation fuel prices as well as adjustments to non-subsidised fuel oil (BBM) and LPG prices. On an annual basis, the administered prices group recorded inflation of 1.53 percent (yoy), down from the previous month’s realisation of 6.08 percent (yoy).