Indonesia’s Statistics Agency (BPS) reported a Consumer Price Index (CPI) inflation of 1.65% month-on-month in March 2025, following two straight months of deflation. The increase was mainly driven by higher electricity tariffs after the government ended its discount program. 

“Inflation of 1.65% was primarily driven by administered prices, which rose 6.53% and contributed 1.16 percentage points to overall inflation,” said BPS Deputy for Production Statistics M. Habibullah during a press briefing on Tuesday, April 8. 

Volatile prices rose 1.96% month-on-month, contributing 0.03%, while core inflation increased by 0.24%, contributing 0.16%. 

Habibullah added that annual inflation in March 2025 stood at 1.03%, while calendar year inflation reached 0.39%. 

By expenditure category, the highest monthly inflation came from housing, water, electricity, and household fuel, which rose 8.45% and contributed 1.18%. The food, beverage, and tobacco group posted a 1.24% increase, contributing 0.37%. 

Interestingly, the transportation sector – usually a driver of inflation during Ramadan –recorded a deflation of 0.08%, subtracting 0.01% from overall inflation. 

On an annual basis, all expenditure categories experienced inflation. Food, beverages, and tobacco rose 2.07%; clothing and footwear 1.41%; household equipment and routine maintenance 0.95%; health 1.80%; transportation 0.83%; recreation, sports, and culture 1.17%; education 1.89%; and food and beverage services/restaurants 2.26%. Meanwhile, housing, water, electricity, and household fuels recorded deflation of 4.68%, along with information, communication, and financial services at 0.24%. 

BPS also noted that the highest annual inflation occurred in the Papua Pegunungan province at 8.05%, while the lowest was in Southwest Papua at 0.24%. The deepest deflation was seen in West Papua at 0.23% and Bengkulu at 0.22%. 

This article is published in partnership with Katadata 

Original article here