No: 28/3/DKom
Consumer Price Index (CPI) inflation in 2025 was maintained within the 2.5%±1% target corridor. Based on inflation data published by BPS-Statistics Indonesia, the CPI index recorded 0.64% (mtm) inflation in December 2025, bringing headline inflation annually in 2025 to 2.92% (yoy). Inflation was maintained within the target range due to monetary policy consistency and close inflation control synergy between Bank Indonesia and the (central and regional) Government within the Central and Regional Government Inflation Control Teams (TPIP and TPID), while strengthening implementation of the National Food Security Program. Moving forward, Bank Indonesia is confident that inflation will remain manageable and within the 2.5%±1% target range in 2026 and 2027.
On a monthly basis, CPI inflation in December 2025 accelerated relative to the 0.17% (mtm) recorded in November 2025. The main contributors to higher headline inflation in the reporting period were volatile food and administered prices, with core inflation remaining comparatively stable. Core inflation was recorded at 0.20% (mtm), relatively stable compared with 0.17% (mtm) the month earlier, edged upwards by gold jewellery and cooking oil. Meanwhile, volatile food (VF) inflation increased to 2.74% (mtm) from 0.02% (mtm) in the previous period, primarily driven by bird's eye chilis, purebred chicken meat and shallots in response to weather disruptions, high prices of livestock production inputs, and a seasonal spike in demand during the Christmas and New Year festive period. Administered prices (AP) inflation accelerated to 0.37% (mtm) from 0.24% (mtm) one month earlier, contributed by fuel prices, airfares and intercity travel fares in line with higher non-subsidised fuel prices and increasing community mobility during the Christmas and New Year festive period.
Annually, CPI inflation in 2025 remained within the target corridor, supported by various inflation components. Low core inflation was maintained at 2.38% (yoy) given policy consistency by Bank Indonesia to anchor inflation expectations to the target range, adequate economic capacity, managed imported inflation in line with the rupiah exchange rate stabilisation policy instituted by Bank Indonesia, as well as the positive impact of digitalisation. Volatile food inflation remained manageable at 6.21% (yoy), supported by efforts to maintain food supply availability and close inflation control synergy between Bank Indonesia and the TPIP/TPID teams, while strengthening implementation of the National Food Security Program in various regions. Meanwhile, administered prices inflation was recorded at 1.93% (yoy) in line with limited government policy to adjust administered prices.
Jakarta, 5th January 2026
Communication Department
Ramdan Denny Prakoso
Executive Director
