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%.
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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.
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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.
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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.
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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.
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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.
