Jakarta: Indonesia's annual inflation rate stood at 2.88 percent in July, primarily driven by increased prices in the food, beverages and tobacco, transportation, as well as personal care and other services sectors. Statistics Indonesia reported these figures, highlighting the factors contributing to the economic trend.
According to BERNAMA News Agency, Statistics Indonesia Deputy for Distribution and Services Statistics, Ateng Hartono, noted that the Consumer Price Index (CPI) was recorded at 111.73 in July 2026, compared to 108.60 the previous year and 111.89 in June. The calendar-year inflation reached 1.65 percent. The food, beverages and tobacco group experienced an annual inflation of 2.97 percent, contributing 0.87 percentage points, with commodities such as fresh fish, cooking oil, rice, and various types of cigarettes playing significant roles.
The transportation sector witnessed an annual inflation of 5.12 percent, contributing 0.62 percentage points. This was mainly attributed to increased prices in gasoline, airfares, cars, engine lubricants, and motorcycles. The personal care and other services group saw an annual inflation of 9.04 percent, contributing 0.61 percentage points, largely due to jewelry prices.
Despite these increases, Indonesia experienced a monthly deflation of 0.14 percent in July, primarily because of lower food prices. Ateng explained that increased production of shallots, red chillies, and bird's eye chillies in major producing areas led to a boost in supply and a subsequent drop in prices. Nevertheless, the transportation group still recorded inflation, with gasoline prices remaining a factor despite lower non-subsidized fuel prices from July 1.
Ateng also mentioned that the education group saw a monthly inflation of 0.55 percent at the start of the new academic year, driven by higher fees for primary schools, kindergartens, and tutoring. Conversely, the personal care and other services group experienced monthly deflation due to a 3.58 percent drop in jewelry prices, which contributed to the overall decline in consumer prices.