Annual Inflation in February 2026 Reaches 4.76 Per Cent, Driven by Low Base Effect from Electricity Tariff Discount

Jakarta – Indonesia’s year-on-year inflation in February 2026 reached 4.76 per cent annually. This figure represents a reversal from February 2025, which recorded deflation of 0.09 per cent.

The increase was driven by the low base effect from the electricity tariff discount policy implemented in early 2025. Food prices ahead of Ramadan also contributed to upward pressure.

Ateng Hartono, Deputy for Distribution and Services at the Central Statistics Agency (BPS), stated that annual inflation in early 2026 does not entirely reflect excessive price pressure. The comparison with the low figures from the same period last year has had a significant impact.

“As a result, in February 2026 the annual inflation rate appears higher although actual price dynamics are relatively aligned with fundamental trends,” the BPS explained in its official release on Monday (2 March 2026).

The discount did not continue into early 2026. Statistically, year-on-year inflation appears higher despite relatively stable price movements.

The housing, water, electricity, and household fuel group recorded year-on-year inflation of 16.19 per cent. This group contributed 2.26 per cent to overall inflation.

The food, beverage, and tobacco group experienced year-on-year inflation of 3.51 per cent. Its contribution reached 1.05 per cent of total inflation.

All provinces recorded year-on-year inflation. Aceh posted the highest inflation at 6.94 per cent. Pegunungan Papua recorded the lowest at 0.63 per cent.

The increase was in line with rising demand and food prices ahead of Ramadan.