Indonesia's annual inflation eased to 3.23% in October 2026, down from 3.28% in September, although higher food and transport prices continued to contribute to consumer price pressures.
Indonesia's annual inflation rate declined slightly to 3.23% in October 2026, compared with 3.28% in September, according to data released by Statistics Indonesia (BPS) on 2 November 2026. The figure remained within Bank Indonesia's inflation target range of 2.5% ± 1 percentage point.
On a monthly basis, consumer prices increased by 0.22% in October, slowing from 0.30% in September. The Consumer Price Index (CPI) rose from 112.31 to 112.56, while cumulative inflation from January to October reached 2.40%.
According to BPS Deputy for Distribution and Services Statistics Ateng Hartono, annual inflation was primarily driven by price increases in food, beverages and tobacco, transportation, and personal care and other services.
The food, beverages and tobacco category recorded annual inflation of 4.82%, contributing 1.40 percentage points to overall inflation. Major contributors included bird's eye chillies, fresh fish, rice, cooking oil, chicken, beef and manufactured cigarettes.
Transportation prices increased by 4.87% year on year, contributing 0.59 percentage points to headline inflation. The increase reflected higher prices for gasoline, airfares, vehicle maintenance, lubricants and other transportation-related goods and services.
Meanwhile, personal care and other services recorded annual inflation of 4.52%, contributing 0.32 percentage points to the overall rate.
Core inflation, which excludes volatile food prices and government-administered prices, declined to 2.56% year on year from 2.84% in September, indicating an easing of underlying price pressures.
Despite the moderation in annual inflation, food and transportation costs remain important factors influencing household purchasing power and business operating expenses.
