Jakarta (Antara) – Vice -Minister of Finance (Wamenkeu) Suahasil Nazara was of the opinion that the deflation occurring in May 2025 was 0.37 percent (MTM), did not reflect the weakening of people’s purchasing power.
“But if inflation is low, this does not mean that the purchasing power is not there, because our indication of purchasing power in inflation is called core inflation,” Suahasil said on Thursday in a global and economic prospects Q1-2025 discussion in the hands of Kadin in Jakarta.
He explained that the core inflation of Indonesia was registered on an annual basis in May 2025 at 2.4 percent (yo -y), which reflects the existence of a healthy interaction between aggregated question (aggregated question) and aggregated delivery (aggregated delivery).
According to him, annual inflation was registered at 1.60 percent (yo -y) in May 2025 not due to a weak question, but rather due to a decrease in turbulent food prices (Volatile food) and prices regulated by the government (Price managed)Such as flight tickets and BBM.
The Central Statistics Agency (BPS) noted that in May 2025 Indonesia underwent a deflation of 0.37 percent on a monthly basis (MTM).
Food, drink and tobacco groups make the largest contribution to 0.41 percent, especially from Red Chile and Cayenne Pepper raw materials.
Suahasil explained that deflation took place in the food group because of the harvest of a number of raw materials, especially rice. In the meantime, deflation occurs in the managed price group because government policy aimed at lowering prices.
“The harvest rice is good, now it appears to harvest corn,” he said.
That is why he still considered the national economy a strong basis, with economic growth that maintained and controlled inflation.
As is known, there was an annual inflation of 1.60 percent (yoj) with a consumer price index (CPI) of 108.07 in May 2025.
The highest provincial inflation took place in the mountainous Papua province of 5.75 percent (JOJ) with CPI of 115.26 and the lowest took place in the province of Gorontalo with 0.28 percent (YOY) with CPI of 107.32.
Provincial deflation took place in the province of West -Papuea with 1.51 percent (yoj) with CPI of 106.60. While the highest district/city inflation took place in JayaWijaya Regency with 5.75 percent (JoJ) with CPI of 115.26 and the lowest place found in the city of Pontianak of 0.01 percent (YOY) with CPI of 106.56.
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Also read: standardization of food prices causes deflation in May 2025
Pewarta: Bayu Saputra
Editor: Biqwanto Situmorang
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