Bank of Indonesia reported that Indonesia’s consumer price inflation remained within its 2.5±1 percent target corridor in June 2026. Based on BPS-Statistics Indonesia data, the Consumer Price Index rose 0.44 percent month on month, taking annual headline inflation to 3.34 percent year on year. The central bank linked the outcome to consistent monetary policy and coordination with central and regional governments on inflation control and food security. Core inflation stayed broadly stable at 0.23 percent month on month, with annual core inflation edging up to 2.76 percent from 2.59 percent in the previous month, reflecting higher international commodity prices alongside anchored inflation expectations. Volatile food inflation slowed to 0.14 percent month on month and 5.58 percent year on year, down from 6.24 percent previously, although shallots, garlic and rice still pushed prices higher because of lower output in production hubs, higher transport costs and the end of the main harvest season. Administered prices rose 1.41 percent month on month and 3.42 percent year on year, driven mainly by petrol prices and airfares after adjustments in non-subsidised fuel and aviation fuel prices tied to high global energy prices. Bank Indonesia projects inflation will remain under control and within the 2.5±1 percent target range in 2026 and 2027, with volatile food inflation supported by continued coordination through the TPIP and TPID teams and the Inflation Control and Food Prosperity Movement.
Bank of Indonesia2026-07-02
Bank of Indonesia says June 2026 inflation remained within target at 3.34 percent
Bank of Indonesia said June 2026 headline inflation was 3.34 percent year on year and remained within its 2.5±1 percent target corridor. Core inflation stayed contained, while volatile food inflation eased and administered prices rose more sharply because of fuel price and airfare increases. The central bank expects inflation to remain within target in 2026 and 2027.