Annual Inflation in February 2026 Reaches 4.76 Per Cent

The Central Bureau of Statistics (BPS) recorded annual inflation in February 2026 at 4.76 per cent with a Consumer Price Index (IHK) of 110.50. This figure represents a significant jump from January 2026, which recorded 3.55 per cent year-on-year inflation with an IHK of 109.75.

Ateng Hartono, Deputy Head of the Distribution and Services Statistics Division at BPS, attributed the elevated inflation at the beginning of this year to a low-base effect triggered by electricity tariff discounts implemented in the previous year. “We are all aware that in January-February 2025, the government implemented an electricity tariff discount policy that suppressed the IHK for January and February 2025,” he stated during a press conference at BPS headquarters on Monday, 2 March 2026.

According to Ateng, the electricity tariff discount policy resulted in inflationary pressures and even deflation in January and February 2025. Consequently, price levels in January and February 2025 fell below normal trend levels. Ateng noted that this condition resulted in a relatively low base for calculating inflation in February 2026.

“As a result, it produces inflation rates that appear higher,” said Ateng. Nevertheless, he stated that current price dynamics are consistent with fundamental trends, and the IHK is projected to return to normal levels in April 2026.

Ateng explained that the impact of the low-base effect is evident from the high annual inflation rate in the housing, water, electricity and household fuel group in February 2026, which reached 16.19 per cent. This group contributed 2.26 percentage points to overall inflation.

The food, beverages and tobacco group also experienced annual inflation of 3.51 per cent, contributing 1.05 percentage points to overall inflation. Meanwhile, the information, communication and financial services group recorded deflation of 0.09 per cent, contributing nearly zero per cent to inflation.

Monthly inflation in February 2026 stood at 0.68 per cent. On a calendar year basis, inflation was recorded at 0.53 per cent. “The expenditure group contributing most to monthly inflation is food, beverages and tobacco, with inflation of 1.54 per cent and contributing 0.45 percentage points to overall inflation,” said Ateng.