Indonesia’s annual inflation rate rose to 3.19% in August 2026 from 2.88% in July, according to Statistics Indonesia (BPS). The Consumer Price Index (CPI) reached 111.97, while prices increased 0.21% month-on-month after declining 0.14% in July. Year-to-date inflation stood at 1.86%.
The August reading was slightly above market expectations of 3.13%, but remained within Bank Indonesia’s inflation target of 2.5% ±1 percentage point for 2026. Bank Indonesia said it expects inflation to remain within the same target range in both 2026 and 2027.
Food, beverages and tobacco were among the main contributors to the increase. The group recorded annual inflation of 3.86% and contributed 1.13 percentage points to headline inflation. Prices of broiler chicken, fresh fish, cooking oil and rice were among the commodities contributing to higher food prices.
On a monthly basis, the food, beverages and tobacco category rose 0.57% and contributed 0.17 percentage points to overall inflation. Other commodities contributing to the increase included bird’s eye chilli, vegetables and tobacco products.
Personal care and other services also contributed to inflation, with gold jewellery prices increasing 0.75% month-on-month. Meanwhile, transportation prices declined 0.50%, mainly due to lower airfares and petrol prices, partially offsetting inflationary pressure from other categories.
Core inflation, which excludes volatile food and government-administered prices, increased to 2.92% year-on-year from 2.76% in July. Bank Indonesia said headline inflation remained under control and attributed this partly to monetary policy and coordination between the central bank and national and regional governments on inflation management.
