Jakarta. Indonesia's annual inflation rate for December 2024 stood at 1.57 percent, aligning with the government's target of around 2.5 percent. The figure showed a slight increase compared to November 2024's inflation rate of 1.55 percent, but was lower than the 2.61 percent recorded in December 2023.

“The year-on-year inflation rate for December 2024 was 1.57 percent, marking an increase in the Consumer Price Index (CPI) from 105.15 in December 2023 to 106.80 in December 2024,” said Pudji Ismartini, Deputy at the Central Statistics Agency (BPS), during a press conference on Thursday.

According to Pudji, December 2024's inflation was shaped by a mix of global commodity trends and domestic consumption patterns, with key sectors contributing to the overall rise in prices.

When broken down by expenditure group, inflation in December 2024 was primarily driven by food, beverage, and tobacco, which saw a 1.9 percent increase and contributed 0.55 percent to the overall inflation. Key commodities in this category included machine-made clove cigarettes, contributing 0.13 percent, and cooking oil, contributing 0.11 percent. Other significant contributors were rice, ground coffee, shallots, fresh fish, chicken meat, and garlic.

In addition to food and beverages, inflation was also significantly influenced by commodities such as gold and jewelry, which contributed 0.35 percent to inflation.

Meanwhile, the transportation group experienced a slight deflation due to falling air transportation fares in December 2024.

Breaking down inflation by component, all components showed annual inflation. Core inflation increased by 2.26 percent, contributing the largest share of 1.44 percent to overall inflation. Key contributors to this component included gold, jewelry, cooking oil, ground coffee, rice with side dishes, and rental costs.

Government-administered prices saw a 0.56 percent inflation rate, contributing 0.11 percent to overall inflation. Volatile food prices had a modest 0.12 percent inflation rate, contributing 0.02 percent, with rice, shallots, chicken meat, garlic, and eggs being the primary contributors.

Geographically, among the 38 provinces monitored, 37 experienced inflation, while one, Gorontalo, saw deflation. The highest inflation was recorded in Papua Pegunungan at 5.36 percent, while Gorontalo posted the deepest deflation at -0.79 percent.