Annual Inflation Reaches 3.48 Percent in March 2026

The Central Statistics Agency (BPS) recorded an annual inflation rate of 3.48 percent in March 2026. Deputy for Distribution and Services Statistics at BPS, Ateng Hartono, stated that the Consumer Price Index rose from 107.22 in March 2025 to 110.95 in March 2026. Ateng explained that, based on expenditure groups, the annual inflation was mainly driven by the housing, water, electricity, and household fuel group, which experienced 7.24 percent inflation. “The commodity with the largest contribution to inflation in the housing, water, electricity, and household fuel group is electricity tariffs,” he said during a press conference on Wednesday, 1 April 2026. According to Ateng, March 2026 inflation is still influenced by the low-base effect due to electricity tariff discounts provided in January-February 2025. However, its impact has started to diminish compared to the previous month, when the annual inflation in February was recorded at 4.76 percent. “In January and February, the influence was quite significant, but in March, the low-base effect’s impact has begun to lessen slightly,” said Ateng. He added that although prepaid electricity tariffs returned to normal prices in March 2025, postpaid tariffs were still affected by the electricity discounts. On a monthly basis, BPS recorded March inflation at 0.41 percent, or an increase in the CPI from 110.50 in February 2026 to 110.95 in March 2026. This figure is lower than the previous year’s 1.65 percent. Meanwhile, year-to-date inflation was recorded at 0.94 percent. Ateng said the expenditure group contributing the most to monthly inflation was food, beverages, and tobacco at 1.07 percent, contributing 0.32 percent to inflation. “The dominant commodities driving inflation in this group are fresh fish, broiler chicken meat, rice, broiler chicken eggs, cayenne peppers, cooking oil, and beef,” he stated.