Indonesia Inflation Rate Lowest in 3 Months

2026-08-03 04:17 By Farida Husna 1 min. read

Indonesia’s annual inflation eased to 2.88% in July 2026 from 3.34% in the prior month, undershooting market expectations of 3.2% and marking the lowest reading since April.

The latest result remained comfortably within Bank Indonesia’s 1-1/2%–3-1/2% target range.

Food inflation slowed to a six-month low (2.97% vs 4.67% in June), reflecting improving food supply conditions amid El Niño risks.

Price growth also moderated for housing (0.99% vs. 1.04%), education (1.0% vs. 1.27%), and personal care (9.04% vs. 10.1%), while clothing inflation was broadly unchanged (1.04% vs. 1.0%).

In contrast, inflation accelerated for transport, furnishings, healthcare, communication, recreation, and restaurants.

Core inflation, which excludes volatile food and government-administered prices, held steady at 2.76% in July.

On a monthly basis, consumer prices declined 0.14%, reversing a 0.44% gain in June and defying estimates of a 0.1% rise.

It pointed to the first monthly drop since January.



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Indonesia Inflation Rate Lowest in 3 Months
Indonesia’s annual inflation eased to 2.88% in July 2026 from 3.34% in the prior month, undershooting market expectations of 3.2% and marking the lowest reading since April. The latest result remained comfortably within Bank Indonesia’s 1-1/2%–3-1/2% target range. Food inflation slowed to a six-month low (2.97% vs 4.67% in June), reflecting improving food supply conditions amid El Niño risks. Price growth also moderated for housing (0.99% vs. 1.04%), education (1.0% vs. 1.27%), and personal care (9.04% vs. 10.1%), while clothing inflation was broadly unchanged (1.04% vs. 1.0%). In contrast, inflation accelerated for transport, furnishings, healthcare, communication, recreation, and restaurants. Core inflation, which excludes volatile food and government-administered prices, held steady at 2.76% in July. On a monthly basis, consumer prices declined 0.14%, reversing a 0.44% gain in June and defying estimates of a 0.1% rise. It pointed to the first monthly drop since January.
2026-08-03
Indonesia Inflation Rate Above Estimates
Indonesia’s annual inflation accelerated to 3.34% in June 2026 from 3.08% in the previous month, exceeding market expectations of 3.2% and marking the highest reading since March. The latest result remained within the upper end of the central bank’s 1-1/2%–3-1/2% target range. Main upward pressure came from all components, including from food (4.67% vs 4.94% in May), housing (1.04% vs 1.0%), transport (4.57% vs 2.30%), clothing (1.0% vs 0.84%), furnishings (1.44% vs 0.98%), healthcare (1.84% vs 1.70%), communication (1.26% vs 0.97%), recreation (1.40% vs 1.30%), education (1.27% vs 1.15%), restaurants (2.36% vs 2.34%), and personal care (10.1% vs 10.35%). Core inflation, which strips out volatile food and administered prices, quickened to a 38-month high of 2.76% from 2.59% in May. On a monthly basis, consumer prices rose 0.44%, quickening from a 0.28% increase in May and topping forecasts of 0.3%. It pointed to the strongest monthly rise since February.
2026-07-01
Indonesia Inflation Tops Expectations
Indonesia’s annual inflation accelerated to 3.08% in May 2026 from an eight-month low of 2.42% in the prior month, surpassing market expectations of 2.97%. Despite the pickup, inflation remained within the central bank’s target range of 1-1/2% to 3-1/2%. Food prices rose the most since last October (4.94% vs 3.06% in April), driven by higher staple costs and elevated distribution expenses across several regions. Additional upward pressures also came from housing (1.0% vs 0.74%), transport (2.30% vs 1.61%), clothing (0.84% vs 0.79%), furnishings (0.98% vs 0.60%), healthcare (1.70% vs 1.49%), communication (0.97% vs 0.83%), recreation (1.30% vs 1.19%), education (1.15% vs 1.14%), and restaurants (2.34% vs 1.93%). Core inflation, which strips out volatile food and administered prices, quickened to a three-month high of 2.59% from 2.44% in April. On a monthly basis, consumer prices increased 0.28%, up from a 0.13% rise in April and well above forecasts of 0.14%.
2026-06-02