Indonesia Inflation Rate Climbs to Near 3-Year High

Indonesia’s annual inflation accelerated to 4.76% in February 2026 from 3.55% in the prior month, reaching its highest level since March 2023. The jump was largely due to a low base effect, as electricity tariff discounts launched in early 2025 had suppressed prices last year, pushing the latest reading above the central bank's 1-1/2%–3-1/2% target range. Upward price pressures came from most components, including food (3.51% vs 1.54% in January), housing (16.19% vs 11.93% in), clothing (0.73% vs 0.56%), furnishings (0.21% vs 0.16%), health (1.61% vs 1.62%), transport (0.12% vs 0.58%), recreation (0.96% vs 1.05%), education (1.11% vs 1.11%), and restaurants (1.37% vs 1.36%). Meantime, deflation in communication costs lingered (-0.09% vs -0.19%). Core inflation, which strips out volatile food and administered prices, rose to 2.63%, the strongest since May 2023. Monthly, consumer prices rose 0.68%, reversing a 0.15% decline in January and marking the fastest monthly gain in ten months.

Indonesia’s annual inflation accelerated to 3.55% in January 2026 from 2.92% a month earlier, the highest since May 2023. While the latest reading fell short of market forecasts of 3.8%, it edged slightly above the central bank's 1-1/2%–3-1/2% target range. Housing inflation surged sharply (11.93% vs 1.62% in December), mainly because electricity tariff discounts granted in early 2025 created a low comparison base. Price pressures persisted for food (1.54% vs 4.58%), clothing (0.56% vs 0.66%), furnishings (0.16% vs 0.2%), health (1.62% vs 1.83%), transport (0.58% vs 1.23%), recreation (1.05% vs 1.17%), education (1.11% vs 1.22%), and restaurants (1.36% vs 1.46%), although momentum eased in some segments. Meantime, deflation in communication costs lingered (-0.19% vs -0.28%). Core inflation, which strips out volatile food and administered prices, rose to 2.45%, the strongest in nine months. Monthly, the CPI fell 0.15%, after a 0.64% gain in December, marking the first drop since August.

Indonesia’s annual inflation accelerated to 2.92% in December 2025 from 2.72% in the prior month, marking the highest reading since April 2024 while staying comfortably within Bank Indonesia’s 1-1/2% to 3-1/2% target range. Food prices rose at the fastest pace in three months (4.58% vs 4.25% in November) while costs also accelerated for housing (1.62% vs 1.57%), transport (1.23% vs 0.71%), and recreation (1.17% vs 1.15%). Meantime, inflation eased for clothing (0.66% vs 0.76%), furnishings (0.2% vs 0.23%), health (1.83% vs 2.09%), accommodation and restaurants (1.46% vs 1.5%), and education (1.22% vs 1.26%). At the same time, a decline in communication cost persisted (-0.28% vs -0.25%). Core inflation, which excludes administered prices and volatile food items, stood at 2.38%, the highest level since May, after holding at 2.36% in the prior two months. Monthly, consumer prices increased 0.64%, a sharp pickup from the 0.17% increase in November and the strongest gain in eight months.