No. 27/167/DKom
Consumer Price Index (CPI) inflation in July 2025 was maintained within the 2.5%±1% target corridor. Based on inflation data published by BPS-Statistics Indonesia, the CPI index in July 2025 recorded 0.30% (mtm) inflation, thus bringing CPI inflation annually to 2.37% (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) through the National Movement for Food Inflation Control (GNPIP) in various regions. Moving forward, Bank Indonesia is confident that inflation will remain manageable and within the 2.5%±1% target range in 2025 and 2026.
The core component experienced inflation. Core inflation in July 2025 stood at 0.13% (mtm), accelerating from 0.07% (mtm) the month earlier. Core inflation in July 2025 was primarily influenced by higher tuition fees, particularly for primary, secondary and high school education, in response to seasonal factors at the beginning of the new academic year, despite anchored inflation expectations. Annually, core inflation in July 2025 was recorded at 2.32% (yoy), retreating from 2.37% (yoy) the month earlier.
Volatile food experienced inflation. VF inflation in July 2025 was recorded at 1.25% (mtm), up from 0.77% (mtm) in the previous period. The main contributors to higher VF inflation in the reporting period were rice, shallots and bird's eye chilies as supply declined during the planting season, coupled with production and distribution disruptions in several regions. Annually, volatile food experienced 3.82% (yoy) inflation in the reporting period, up from 0.57% (yoy) previously. Moving forward, Bank Indonesia expects to manage VF inflation effectively, supported by close synergy with the Government Inflation Control Teams through the GNPIP movement in various regions.
Administered prices also experienced inflationary pressures. AP inflation in July 2025 remained steady at 0.09% (mtm), unchanged from the rate recorded one month earlier. AP inflation was primarily driven by petroleum, household fuel and machine-rolled clove cigarettes in line with adjustments to non-subsidised fuel prices, distribution constraints affecting liquefied petroleum gas (LPG) in several regions and the ongoing upward trend in retail prices of cigarettes. Annually, administered prices recorded 1.32% (yoy) inflation, down from 1.34% (yoy) the month earlier.
Jakarta, 1st August 2025
Communication Department
Ramdan Denny Prakoso
Executive Director
