Indonesia Inflation Picks Up to 3.19%

Indonesia’s annual inflation accelerated to 3.19% in August 2026 from July’s three-month low of 2.28%, slightly exceeding market expectations of 3.13%. Despite the pickup, inflation remained within Bank Indonesia’s 1.5%–3.5% target range. Core inflation, which excludes volatile food and government-administered prices, rose to 2.92% in August, the highest since March 2023. On a monthly basis, consumer prices rose 0.21%, reversing a 0.14% decline in July and broadly in line with forecasts of a 0.2% increase.

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.

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.