No. 28/176/DKom
Consumer Price Index (CPI) inflation in August 2026 was contained within the 2.5%±1% target corridor. Based on data released by BPS-Statistics Indonesia, the CPI in August 2026 recorded 0.21% (mtm) inflation, bringing annual CPI inflation to 3.19% (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 supported by 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 August 2026 was recorded at 0.21% (mtm), up from 0.14% (mtm) realised in the previous period. Core inflation was mainly contributed by gold jewellery, in line with rising global gold prices amid anchored inflation expectations. Annually, core inflation in August 2026 was recorded at 2.92% (yoy), higher than the 2.76% (yoy) realised in the previous period.
Volatile food (VF) inflation remained under control. VF in August 2026 recorded 0.88% (mtm) inflation, after experiencing 1.68% (mtm) deflation in the previous period. The main contributors to VF inflation were purebred chicken meat, bird's eye chillies and rice. Annually, VF inflation was recorded at 4.06% (yoy), up from 2.52% (yoy) in the previous period. Moving forward, VF inflation is expected to remain under control, supported by close synergy between Bank Indonesia and the TPIP/TPID teams, while supported by the Inflation Control and Food Prosperity Movement (GPIPS).
Administered prices (AP) experienced deflation. AP in August 2026 recorded 0.33% (mtm) deflation, following 0.25% (mtm) inflation in the previous period. AP deflation primarily stemmed from airfares and fuel prices in line with lower aviation fuel prices and lower prices of non-subsidised Pertamax and Pertamax Turbo fuel. Annually, AP inflation was recorded at 3.32% (yoy), lower than the 3.58% (yoy) realised in the previous period.
Jakarta, 1st September 2026
Communication Department
Ramdan Denny Prakoso
Executive Director
