No: 27/261/DKom
Consumer Price Index (CPI) inflation in October 2025 was maintained within the 2.5%±1% target corridor. Based on inflation data published by BPS-Statistics Indonesia, the CPI index recorded 0.28% (mtm) inflation in October 2025, bringing headline inflation annually to 2.86% (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 October 2025 was recorded at 0.39% (mtm), up from 0.18% (mtm) the month earlier. The main contributors to core inflation in October 2025 were gold jewellery and tuition fees for tertiary education. The latest developments were influenced by rising international gold prices and seasonal factors at the start of the new academic year, despite anchored inflation expectations. Annually, core inflation in October 2025 was recorded at 2.36% (yoy), up from 2.19% (yoy) the month earlier.
Volatile food experienced inflation. Volatile food (VF) in October 2025 experienced 0.03% (mtm) inflation, down from 0.52% (mtm) in the previous period. VS inflation primarily stemmed from higher prices of red chilis, purebred chicken eggs and purebred chicken meat in response to limited supply caused by weather disruptions. Annually, VF inflation increased to 6.59% (yoy) in the reporting period from 6.44% (yoy) the month earlier. 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. Administered prices (AP) in October 2025 recorded 0.10% (mtm) inflation, up slightly from 0.06% (mtm) the month earlier. The main contributors to AP inflation in the reporting period were machine-rolled clove cigarettes and airfares given the upward trends affecting retail cigarette prices and aviation fuel. Annually, AP inflation was recorded at 1.45% (yoy), up from 1.10% (yoy) the month earlier.
Jakarta, 3rd November 2025
Communication Department
Ramdan Denny Prakoso
Executive Director
