Annual Inflation in March 2026 Reaches 3.48%, Far Above March 2025

The Central Statistics Agency (BPS) recorded an annual inflation rate of 3.48% in March 2026. This figure is considerably higher than the annual inflation in March 2025, which was only 1.03%.

Deputy for Distribution and Services Statistics at BPS, Ateng Hartono, explained that this condition was partly caused by a slight lingering low-base effect. In January-February 2025, he noted, the government implemented electricity tariff discounts. As a result, price levels during that period were below the normal trend and suppressed the Consumer Price Index (CPI).

Although prepaid electricity tariffs returned to normal in March 2025, discounts for postpaid tariffs continued. Therefore, inflation in March 2026 appears higher, even though overall price dynamics remain aligned with fundamental trends.

“There is still a slight low-base effect influence, evident from the annual inflation in the housing, water, electricity, and household fuel group in March 2026, which reached 7.24%, with a contribution to inflation of 1.08%,” said Ateng during a press conference in Jakarta on Wednesday (1/4).

Furthermore, BPS reported that the food, beverages, and tobacco group experienced annual inflation of 3.34%, contributing 0.99% to inflation. Meanwhile, the information, communication, and financial services group recorded deflation of 0.03%, contributing nearly zero to deflation.

By region, all provinces experienced annual inflation. The highest inflation occurred in Aceh at 5.31%. The lowest inflation was in Lampung at 1.16%.