BI Governor States Consumer Price Index Remains Under Control

Jakarta — Bank Indonesia Governor Perry Warjiyo stated that the consumer price index (CPI) remains well-controlled.

“CPI inflation in February 2026 was recorded at 4.76 per cent year-on-year, primarily influenced by temporary base effects from the government’s policy of providing a 50 per cent electricity tariff discount for households in January and February 2025,” he said during a press conference on the results of Bank Indonesia’s Board of Governors Meeting held online in Jakarta on Tuesday.

Additionally, core inflation remained stable at 2.63 per cent year-on-year, mainly driven by increases in gold prices.

Similarly, volatile food (VF) inflation was recorded at 4.64 per cent year-on-year, remaining controlled amid increased demand during major national religious holidays, including the Chinese New Year and the Islamic month of Ramadan 1447 H, as well as supply reductions caused by adverse weather.

Going forward, Perry continued, Bank Indonesia projects inflation for 2026 and 2027 to remain within the 2.5±1 per cent range, although higher than the previous forecast, influenced by rising global commodity price prospects.

Core inflation is projected to remain controlled, whilst VF inflation is expected to increase due to higher global food and fertiliser prices.

“Bank Indonesia will continue strengthening pre-emptive monetary policy responses and collaborating with the government through central and regional inflation control teams (TPIP/TPID) via strengthened implementation of the Movement for Inflation and Food Prosperity Control (GPIPS) to maintain inflation within its target range,” said the Bank Indonesia Governor.