No. 27/141/DKom
Consumer Price Index (CPI) inflation in June 2025 was maintained within the 2.5%±1% target corridor. Based on inflation data published by BPS-Statistics Indonesia, the CPI index in June 2025 recorded 0.19% (mtm) inflation, thus bringing CPI inflation annually to 1.87% (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 June 2025 stood at 0.07% (mtm), relatively stable compared with 0.08% (mtm) recorded the month earlier. Core inflation was primarily influenced by higher international gold prices, despite anchored inflation expectations. Annually, core inflation in June 2025 was recorded at 2.37% (yoy), decreasing from 2.40% (yoy) one month earlier.
Volatile food experienced inflation. VF inflation was recorded at 0.77% (mtm) in June 2025, following 2.48% (mtm) deflation the month earlier. VF inflation was primarily driven by rice, bird's eye chilies and shallots as supply declined at the end of the harvesting season, coupled with production and distribution disruptions in several regions. Annually, volatile food recorded 0.57% (yoy) inflation after experiencing 1.17% (yoy) deflation in the previous period. 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. AP in June 2025 recorded 0.09% (mtm) inflation, accelerating from 0.02% (mtm) deflation the month earlier. AP inflation primarily stemmed from airfares, household fuel and machine-rolled clove cigarettes in line with increasing community mobility during the school holidays, adjustments to LPG retail prices in several regions and the ongoing gradual transmission of higher excise duties on tobacco products. Annually, administered prices recorded 1.34% (yoy) inflation in the reporting period, down from 1.36% (yoy) the month earlier.
Jakarta, 1st July 2025
Communication Department
Ramdan Denny Prakoso
Executive Director
