No.28/53/DKom
Based on data released by BPS-Statistics Indonesia, the Consumer Price Index (CPI) in February 2026 recorded 0.68% (mtm) inflation. This was influenced by core inflation and volatile food inflation, which remained under control, accompanied by administered prices deflation. Annually, therefore, CPI inflation was recorded at 4.76% (yoy). Moving forward, Bank Indonesia is confident that annual inflation in 2026 and 2027 will decline and remain within the 2.5%±1% target corridor in line with the end of the low base effect on annual inflation in February 2026 due to the 50% discounted electricity tariffs for households introduced by the Government in January-February 2025. The projection is also 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), while strengthening implementation of the National Food Security Program.
Core inflation remained under control. Core inflation in February 2026 stood at 0.42% (mtm), increasing from 0.37% (mtm) realised one month earlier. The main contributors to slightly higher core inflation in the reporting period were upward international gold prices, as reflected in higher prices of gold jewellery, as well as inflationary pressures on cooking oil and road vehicles, despite anchored inflation expectations. Annually, core inflation in February 2026 remained under control at 2.63% (yoy).
Volatile food (VF) inflation remained under control despite the national religious holidays (HBKN) of Chinese New Year and the holy fasting month of Ramadan 1447 H. VF inflation in February 2026 was recorded at 2.50% (mtm), following 1.96% (mtm) deflation the month earlier. The main contributors to VF inflation included purebred chicken meat, bird's eye chilis and red chilis in response to a seasonal spike in demand during Ramadan, coupled with lower supply due to weather disruptions. Annually, volatile food experienced 4.64% (yoy) inflation in the reporting period, up from 1.14% (yoy) in January 2026. Moving forward, volatile food inflation is projected to remain under control, supported by close synergy between Bank Indonesia and the Central and Regional Government Inflation Control Teams (TPIP and TPID), while strengthening implementation of the Inflation Control and Food Prosperity Movement (GPIPS).
Administered prices experienced another period of deflation. Administered prices (AP) in February 2026 recorded 0.03% (mtm) deflation, following 0.32% (mtm) deflation in January 2026. The main contributor to AP deflation in the reporting period was fuel in line with lower prices of non-subsidised petrol in February 2026. Annually, AP inflation increased to 12.66% (yoy) from 9.71% (yoy) the month earlier, primarily due to low base effect of the discounted electricity tariffs for households introduced by the Government in January-February 2025.
Jakarta, 2nd March 2026
Communication Department
Ramdan Denny Prakoso
Executive Director
