Bank Indonesia: March Consumer Price Index Inflation Remains Stable

Executive Director of the Bank Indonesia Communication Department, Ramdan Denny Prakoso, stated that the Consumer Price Index (CPI) inflation for March 2026 remained stable within the target range of 2.5±1%. Based on data from the Central Statistics Agency (BPS), the March 2026 CPI recorded inflation of 0.41% (mtm), resulting in annual inflation of 3.48% (yoy), down from February 2026’s 4.76% (yoy). “Inflation that remains stable within its target range is the result of consistent monetary policy,” he said in an official statement quoted on Friday, 3 April 2026. According to Ramdan, inflation remains controlled due to the close synergy in inflation control between Bank Indonesia and the government (central and regional) within the Central and Regional Inflation Control Teams (TPIP and TPID), as well as strengthening the implementation of the National Food Security Programme. Bank Indonesia, Ramdan said, is optimistic that inflation will remain controlled within the target range of 2.5±1% in 2026 and 2027. He explained that core group inflation in March 2026 was recorded at 0.13% (mtm), lower than the previous month’s 0.42% (mtm). Annually, core inflation was 2.52% (yoy), down from 2.63% (yoy). This development was influenced by the decline in global gold prices and stable inflation expectations amid increased demand during the National Religious Holiday of Eid al-Fitr. The volatile food group in March 2026 experienced inflation of 1.58% (mtm), lower than the previous month’s 2.50% (mtm). Annually, inflation in this group was recorded at 4.24% (yoy), down from 4.64% (yoy). Inflation was mainly contributed by broiler chicken meat, rice, and broiler eggs in line with increased demand during Eid al-Fitr. Going forward, volatile food inflation is projected to remain controlled, supported by the synergy between Bank Indonesia and TPIP and TPID, as well as strengthening the implementation of the Inflation Control and Prosperous Food Movement (GPIPS). Meanwhile, the administered prices group recorded inflation of 0.31% (mtm), reversing from the previous month’s deflation of 0.03% (mtm). Annually, this group experienced inflation of 6.08% (yoy), lower than the previous month’s 12.66% (yoy). Inflation was mainly triggered by increases in petrol prices and intercity transport fares in line with adjustments to non-subsidised fuel prices and increased mobility during Eid al-Fitr.