August 2026 Inflation at 0.21%, Bank Indonesia Confident in Target Stability Until Year-End
Bank Indonesia assesses that the Consumer Price Index (CPI) inflation for August 2026 remains maintained within the target range of 2.5±1%. According to data from the Central Bureau of Statistics, the CPI in August 2026 recorded inflation of 0.21% (month-on-month), resulting in an annual inflation rate of 3.19% (year-on-year).
Executive Director of the Communications Department, Ramdan Denny Prakoso, revealed that inflation remaining within the target range is the result of consistent monetary policy. This is also due to the close synergy in inflation control between Bank Indonesia and the Government (Central and Regional) through the Central and Regional Inflation Control Teams (TPIP and TPID), as well as the strengthened implementation of the National Food Security Programme.
“Looking ahead, Bank Indonesia is confident that inflation will remain controlled within the target range of 2.5±1% in 2026 and 2027,” he stated in a release on Wednesday, 2 September 2026.
Core inflation remained stable. Core inflation in August 2026 was recorded at 0.21% (month-on-month), higher than the previous month’s realisation of 0.14% (month-on-month). This core inflation was primarily contributed by gold jewellery commodities, following the increase in global gold prices amidst maintained inflation expectations. On an annual basis, core inflation in August 2026 was recorded at 2.92% (year-on-year), higher than the previous month’s realisation of 2.76% (year-on-year).
He emphasised that volatile food inflation also remains controlled. The volatile food group in August 2026 experienced inflation of 0.88% (month-on-month), higher than the previous month’s deflation of 1.68% (month-on-month). Volatile food inflation was mainly contributed by commodities such as broiler chicken, bird’s eye chilli, and rice. Annually, the volatile food group experienced inflation of 4.06% (year-on-year), higher than the previous month’s realisation of 2.52% (year-on-year).
“Moving forward, volatile food inflation is predicted to remain controlled, supported by the close synergy in inflation control between Bank Indonesia and the TPIP and TPID, as well as the implementation of the Inflation Control and Prosperous Food Movement (GPIPS),” he said.
The administered prices group recorded deflation. The administered prices group in August 20cal 2026 experienced deflation of 0.33% (month-on-month), lower than the previous month’s inflation of 0.25% (month-on-month).
This deflation was primarily contributed by air transport tariffs and petrol, following the decrease in the prices of avtur (aviation fuel) and non-subsidised fuel types such as Pertamax and Pertamax Turbo. Annually, the administered prices group recorded inflation of 3.32% (year-on-year), lower than the previous month’s inflation of 3.58% (year-on-year).