Bank of Indonesia reported that Consumer Price Index inflation in 2025 remained within the 2.5%±1% target corridor, with December 2025 CPI inflation at 0.64% month on month and headline inflation at 2.92% year on year for 2025, based on data published by BPS-Statistics Indonesia. December inflation accelerated from 0.17% month on month in November, driven mainly by volatile food and administered prices, while core inflation stayed relatively stable at 0.20% month on month, with upward pressure from gold jewellery and cooking oil. Volatile food inflation rose to 2.74% month on month, led by bird’s eye chilis, purebred chicken meat and shallots amid weather disruptions, higher livestock input costs, and seasonal demand around the Christmas and New Year period; administered prices inflation increased to 0.37% month on month, reflecting fuel prices, airfares and intercity travel fares alongside higher non-subsidised fuel prices and increased mobility. For 2025, core inflation was 2.38% year on year, volatile food inflation 6.21% year on year, and administered prices inflation 1.93% year on year. Bank of Indonesia expects inflation to remain within the 2.5%±1% target range in 2026 and 2027, citing continued monetary policy consistency and coordination with central and regional government through the Inflation Control Teams (TPIP and TPID), alongside implementation of the National Food Security Program and exchange-rate stabilisation policies.
Bank Indonesia 2026-01-05
Bank of Indonesia reports 2025 CPI inflation held within the 2.5%±1% target corridor at 2.92%
Bank of Indonesia reported that Consumer Price Index inflation in 2025 remained within the 2.5%±1% target corridor, with December CPI inflation at 0.64% month on month and headline inflation at 2.92% year on year. The bank expects inflation to stay within this target range in 2026 and 2027, supported by consistent monetary policy and coordination with government initiatives.