Jakarta. The Central Statistics Agency (BPS) reported a deflation of 0.18 percent for July 2024, with the Consumer Price Index (CPI) dropping from 106.28 in June to 106.09 in July. This marks the third month of deflation this year.

Despite the monthly deflation, Indonesia continues to experience inflation on an annual basis.

"Year-on-year (YoY) inflation stands at 2.13 percent, while year-to-date (YTD) inflation is at 0.89 percent. The deflation in July 2024 is more significant compared to June and represents the third deflationary period of the year," said Acting BPS Head Amalia Adininggar Widyasanti.

BPS records indicate that the primary driver of deflation in July 2024 was the food, beverage, and tobacco sector, which saw a deflation of 0.97 percent and contributed a deflationary impact of 0.28 percent.

On the other hand, commodities such as cayenne pepper and rice contributed to inflation, with respective impacts of 0.04 percent. Additional items like jewelry, ground coffee, potatoes, machine-made clove cigarettes, and hand-rolled kretek cigarettes each added 0.01 percent to inflation.

Regionally, 32 out of 38 provinces in Indonesia experienced deflation, while six provinces saw inflation. The most significant deflation of 1.07 percent occurred in West Sumatra, while the highest inflation rate of 0.25 percent was recorded in Southwest Papua.