No. 28/26/DKom
Based on data released by BPS-Statistics Indonesia, the Consumer Price Index (CPI) in January 2026 recorded monthly deflation of 0.15% (mtm). The latest developments were influenced by core inflation, which generally remained under control, coupled with deflationary pressures on volatile food and administered prices. Annually, therefore, CPI inflation was recorded at 3.55% (yoy), up slightly from 2.92% (yoy) one month earlier. Moving forward, Bank Indonesia is confident that annual inflation in 2026 and 2027 will track a disinflationary trend and remain within the 2.5%±1% target corridor. The projection is supported by 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), strengthening implementation of the National Food Security Program as well as the end of the base effect of low inflation recorded in January 2025 due to the discounted electricity tariffs introduced by the Government.
Core inflation remained under control. Core inflation in January 2026 was recorded at 0.37% (mtm), up slightly from 0.20% (mtm) realised one month earlier. Core inflation was influenced by higher international gold commodity prices amid well-anchored inflation expectations. The main contributors to core inflation in January 2026 were gold jewellery, house rentals and motorcycles. Annually, core inflation in January 2026 increased to 2.45% (yoy) from 2.38% (yoy) the month earlier.
Volatile food experienced deflation. Volatile food (VF) recorded 1.96% (mtm) deflation in January 2026, following 2.74% (mtm) inflation one month earlier. VF deflation primarily stemmed from red chilis, bird's eye chilis and shallots as prices fell on the back of increasing supply during the harvesting season. Annually, VF inflation fell to 1.14% (yoy) in the reporting period from 6.21% (yoy) the month earlier. Moving forward, VF inflation is expected to remain under control, supported by close synergy with the Government Inflation Control Teams, while strengthening implementation of the National Food Security Program.
Administered prices also experienced deflationary pressures. Administered prices (AP) in January 2026 recorded 0.32% (mtm) deflation, following 0.37% (mtm) inflation one month earlier. The main contributors to AP deflation in the reporting period were petrol, airfares and intercity travel fares due to lower non-subsidised fuel prices and the normalisation of mobility after the recent Christmas and New Year festive period. Annually, AP inflation was recorded at 9.71% (yoy), higher than the 1.93% (yoy) posted in December 2025, primarily due to the base effect of government policy to discount electricity tariffs by 50% for low-power households in January-February 2025.
Jakarta, 2nd February 2026
Communication Department
Ramdan Denny Prakoso
Executive Director
