No. 28/112/DKom
Consumer Price Index (CPI) inflation in May 2026 was contained within the 2.5%±1% target range. Based on data released by BPS-Statistics Indonesia, the CPI in May 2026 recorded 0.28% (mtm) inflation, bringing annual headline inflation to 3.08% (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 through the Central/Regional Government Inflation Control Teams (TPIP/TPID), while strengthening implementation of the National Food Security Program. Moving forward, Bank Indonesia is confident that inflation will remain under control and within the 2.5%±1% target range in 2026 and 2027.
Core inflation remained under control. Core inflation in May 2026 was recorded at 0.22% (mtm), slightly lower than the 0.23% (mtm) realised in the previous period. The latest core inflation developments were primarily influenced by higher cooking oil prices, amid anchored inflation expectations. Annually, core inflation in May 2026 was recorded at 2.59% (yoy), up from 2.44% (yoy) the month earlier.
Volatile food (VF) inflation remained under control. VF in May 2026 experienced 0.22% (mtm) inflation, higher than the 0.88% (mtm) deflation recorded in the previous period. The main contributors to VF inflation in the reporting period were red chillies, shallots, tomatoes and rice in line with lower supply caused by production disruptions stemming from extreme weather and the end of the main harvesting season, amid stronger demand during the Eid-ul-Adha festive period. Annually, VF inflation was recorded at 6.24% (yoy), increasing from 3.37% (yoy) in the previous period. Moving forward, VF inflation is projected to remain under control, supported by close synergy between Bank Indonesia and the TPIP and TPID, while strengthening implementation of the Inflation Control and Food Prosperity Movement (GPIPS).
Administered prices (AP) experienced inflation. AP in May 2026 recorded 0.52% (mtm) inflation, lower than the 0.69% (mtm) realised in the previous period. AP inflation was mainly contributed by household fuel, petrol prices and airfares in line with adjustments to non-subsidised Liquefied Petroleum Gas (LPG) prices, non-subsidised fuel prices and aviation fuel prices following the increase in global energy prices. Annually, AP inflation was recorded at 2.07% (yoy), higher than the 1.53% (yoy) inflation recorded in the previous period.
Jakarta, 2nd June 2026
Communication Department
Ramdan Denny Prakoso
Executive Director
