Indonesia Inflation Rate

Indonesia’s annual inflation accelerated to 1.87% in June 2025, up from 1.60% in May and slightly above market forecasts of a 1.83% increase, remaining within the central bank’s target range of 1.5% to 3.5%. Prices accelerated for food (1.99 % vs 1.03% in May), housing (1.59% vs 1.54%), health (1.84% vs 1.79%), and clothing (1.01% vs 0.91%). Prices moderated for accommodation and restaurants (1.95% vs 1.97%), furnishing (0.57% vs 0.79%), transport (0.15% vs 0.18%), and education (1.82% vs 1.88%). By contrast, communication prices continued to drop (-0.27% vs -0.28%). Core inflation, which excludes administered and volatile food prices, edged down to a five-month low of 2.37%, from 2.4% in May, and came in below the consensus estimate of a 2.44% rise. On a monthly basis, the CPI increased by 0.19%, rebounding from a 0.37% decline in May and slightly above market forecasts of a 0.15% gain.

Indonesia’s annual inflation eased to 1.60% in May 2025, down from April’s eight-month high of 1.95%, as price pressures subsided following the Eid al-Fitr festivities, with food prices rising the least since August 2020 (1.03 % vs 2.17%). Inflation remained within the central bank’s target range of 1.5% to 3.5%. Inflation also moderated for housing (1.54% vs 1.60% in April), health (1.79% vs 1.83%), accommodation and restaurants (1.97% vs 2.14%), and furnishing (0.79% vs 0.88%). Meanwhile, inflation accelerated for clothing (0.98% vs 0.91%), while it rebounded for transport (0.18% vs -0.11%). On the other hand, education inflation was steady (at 1.88%). By contrast, communication prices continued to fall (-0.28% vs -0.64%). Core inflation, which excludes administered and volatile food prices, edged down to a four-month low of 2.4% from a 22-month peak of 2.50% in April. Monthly, the CPI fell by 0.37%—the 1st monthly decline in three months—reversing a 1.17% rise recorded in April.

Indonesia’s consumer prices rose by 1.95% yoy in April 2025, accelerating from a 1.03% increase in March. This was the highest annual reading since August 2024, driven by a rebound in spending during the Eid al-Fitr festivities. Despite the uptick, inflation remained within the central bank’s target range of 1.5% to 3.5%. Housing prices rebounded sharply (1.60% vs - 4.68% in March), following the expiration of the 50% electricity tariff rebate that had been in place during the first two months of 2025. Prices also accelerated for food (2.17% vs 2.07%) and health (1.83% vs 1.80%), while inflation moderated for accommodation and restaurants (2.14% vs 2.26%). In contrast, prices fell for transport (-0.11% vs 0.83%) and communication (-0.64% vs -0.24%). Core inflation, which excludes administered and volatile food prices, edged up to a 22-month peak of 2.50%. Monthly, CPI climbed by 1.17%, easing from a 1.65% rise in March, which had marked the sharpest monthly gain since December 2014.