Indonesia’s Annual Inflation Rises to 3.34% in June 2026

Indonesia Inflation accelerated in June 2026 as higher food, transportation, and personal care costs pushed consumer prices upward. The latest data from Statistics Indonesia (BPS) showed annual inflation reached 3.34%, up from 3.08% in May and remaining within the government’s target range of 2.5% ± 1%.

Deputy for Distribution and Services Statistics Ateng Hartono said the Consumer Price Index (CPI) increased from 108.27 in June 2025 to 111.89 in June 2026.

Indonesia Inflation Driven by Food Prices

Food, beverages, and tobacco recorded the largest annual increase among all spending categories. The group posted 4.67% inflation and contributed 1.36 percentage points to overall inflation.

Fresh fish, rice, cooking oil, red chilies, chicken meat, bird’s eye chilies, machine-made clove cigarettes, and shallots were the main contributors to rising food prices.

Meanwhile, the personal care and other services category rose 10.10%, mainly because of higher gold and jewelry prices.

Transportation costs also increased 4.57% from a year earlier. Higher gasoline prices, airfares, cars, motorcycles, lubricants, and engine oil contributed to the increase.

Regional Inflation Shows Wide Differences

All 38 provinces recorded annual inflation in June.

The highest inflation occurred in Highland Papua, where prices increased 7.84%. West Sulawesi recorded the lowest annual inflation at 2.29%.

Indonesia Core Inflation Remains the Largest Contributor

Core inflation reached 2.76% and contributed 1.77 percentage points to annual inflation, making it the largest contributor overall.

Gold jewelry, cooking oil, prepared meals, mobile phones, and higher education fees supported core inflation.

Government-administered prices increased 3.42%, driven mainly by gasoline, airfare, household fuel, and machine-made clove cigarettes.

Meanwhile, volatile food prices climbed 5.58%. Rice, red chilies, chicken meat, bird’s eye chilies, and shallots remained the primary drivers.

Outlook

Although Indonesia’s inflation rate remains within the official target range, rising prices may continue to influence household spending and business costs in the coming months. Market participants will also watch future inflation data for clues about Bank Indonesia’s monetary policy and the outlook for the rupiah.

For travelers, businesses, and individuals planning international transactions, monitoring inflation and exchange rate movements can help improve financial planning. Cash X Change offers competitive foreign currency exchange services, while Ditransferin’s Western Union services provide a secure and convenient way to send or receive money internationally.

Source: Investor Daily