Annual Inflation Hits 3.08 Per Cent in May, Driven Primarily by Food and Gold
The Indonesian Central Statistics Agency (BPS) recorded that Indonesia’s annual inflation in May 2026 reached 3.08 per cent year-on-year (yoy). This figure is notably higher than the annual inflation recorded in May 2025, which stood at 1.60 per cent.
Pudji Ismartini, Deputy for Methodology and Statistical Information at BPS, stated that the food, beverages, and tobacco group was the largest contributor to annual inflation, with a 1.43 per cent contribution and an inflation rate of 4.94 per cent. The increase in annual inflation was primarily driven by a surge in food prices and the ongoing rise in the price of jewellery gold over recent months.
“The annual inflation of the food, beverages, and tobacco group was mainly driven by fresh fish, rice, broiler chicken, cooking oil, bird’s eye chilli, machine-rolled clove cigarettes (SKM), and red chilli,” Pudji said during a BPS press conference on Tuesday (2/6/2026).
According to BPS, the rising price of jewellery gold was a key factor driving inflation within that group.
In terms of components, all elements forming the inflation index experienced year-on-year price increases. Core inflation was the largest contributor, with an inflation contribution of 1.66 per cent and an inflation rate of 2.59 per cent. Commodities driving core inflation included jewellery gold, cooking oil, rice with side dishes, academy or university tuition fees, house rentals, and automobiles.
Meanwhile, the volatile goods component recorded an annual inflation of 6.24 per cent, with a 1.02 per cent contribution. This group’s inflation was primarily triggered by price increases in rice, broiler chicken, bird’s eye chilli, red chilli, shallots, and beef.
BPS also noted that all provinces in Indonesia experienced annual inflation in May 2026. The highest inflation occurred in West Papua Province at 5.94 per cent, while the lowest was recorded in Lampung at 1.94 per cent. Seventeen provinces experienced annual inflation above the national average of 3.08 per cent.
On a monthly basis, inflation for May 2026 was recorded at 0.28 per cent, while calendar year-to-date inflation for January-May 2026 reached 1.35 per cent.