BI Governor: Inflation for 2026 and 2027 Remains Within the 2.5±1 Percent Target

Bank Indonesia continues to strengthen synergies with the government in the Central/Regional Inflation Control Teams (TPIP/TPID) through enhanced implementation of the Gerakan Pengendalian Inflasi dan Pangan Sejahtera (GPIPS) to keep inflation controlled within its target. Jakarta (ANTARA) - Bank Indonesia Governor Perry Warjiyo is confident that inflation for 2026 and 2027 will remain within the 2.5±1 percent target range, thanks to the support of consistent monetary policy in maintaining inflation and various government policies in controlling prices. “Bank Indonesia continues to strengthen synergies with the government in the Central/Regional Inflation Control Teams (TPIP/TPID) through the strengthening of the implementation of the Gerakan Pengendalian Inflasi dan Pangan Sejahtera (GPIPS) to keep inflation controlled within its target,” he said during the Announcement of the April 2026 Board of Governors Meeting (RDG), held virtually and attended in Jakarta on Wednesday. On that occasion, Perry stated that Consumer Price Index (CPI) inflation remains controlled. In March 2026, CPI inflation was recorded at 3.48 percent, lower than the previous month’s realisation of 4.76 percent year-on-year (yoy). Core inflation decreased to 2.52 percent yoy, in line with inflation expectations remaining anchored to the target, supported by Bank Indonesia’s consistent monetary policy. Similarly, volatile food (VF) group inflation also fell to 4.24 percent yoy, supported by sufficient supplies of major food commodities amid increased demand during the National Religious Holiday (HBKN) of Eid al-Fitr 1447 Hijriah. Furthermore, administered prices (AP) group inflation declined to 6.08 percent yoy from the previous month’s 12.66 percent yoy, in line with minimal government-regulated price policies and the end of the temporary base effect from household electricity tariff discount policies in January and February 2025. Therefore, the party remains confident that inflation will continue to stay within the established target range going forward.