Bank Indonesia Prepares Steps to Control Volatile Food Inflation

Bank Indonesia (BI) views food prices as still not secure, contributing to national inflation through volatile food inflation. BI Governor Perry Warjiyo stated that the risks have been anticipated and the central bank has prepared measures to face these pressures. “When we talk about inflation, there are three components. First is headline inflation, core inflation, and volatile food inflation. Regarding volatile food inflation, the factors include general price increases and imported inflation,” Perry said during a press conference on the July 2026 BI Rate decision, Wednesday (22/7/2026). Perry admitted that volatile food inflation is quite challenging. However, his party has anticipated it by synergising with the central government, regional governments, and 46 BI representative offices, through the Movement for Inflation Control and Food Security (GPIPS). “To control volatile food inflation, BI is synergising with the central government, regional governments, and 46 BI representative offices within the framework of the inflation control team, including how we together with regional governments and our 46 representative offices carry out the Movement for Inflation Control and Food Security (GPIPS),” Perry explained. With this movement and synergy, BI hopes inflation can consistently remain below 3 per cent going forward. “So we believe that inflation, with these various factors, will be controlled within the target range of 2.5 plus minus 1 per cent, where we are confident inflation will always be below 3 per cent. Headline inflation plus volatile food inflation, we believe, will remain below 3.3 per cent,” he clarified.