BI: March 2026 Inflation Remains Stable Due to Consistent Policy

Bank Indonesia (BI) views the Consumer Price Index (CPI) inflation in March 2026, which remained stable within the target range, as partly resulting from consistent monetary policy. This achievement is also supported by close synergy in inflation control between BI and central and regional governments through the Central and Regional Inflation Control Teams (TPIP and TPID), as well as strengthened implementation of the national food resilience programme. Executive Director of BI’s Communication Department, Ramdan Denny Prakoso, stated in a press release received in Jakarta on Thursday that moving forward, Indonesia’s central bank is confident that inflation will remain controlled within the 2.5% ±1% target range in 2026 and 2027. Based on data from the Central Statistics Agency (BPS) released on Wednesday (1/4), the CPI in March 2026 recorded inflation of 0.41% (month-to-month/mtm), resulting in an annual CPI inflation of 3.48% (year-on-year/yoy), a decrease from the previous month’s realisation of 4.76% (yoy). Core inflation in March 2026 was recorded at 0.13% (mtm), lower than the previous month’s 0.42% (mtm). The development of core inflation was mainly influenced by the decline in global gold commodity prices and stable inflation expectations, amid increased demand during the Eid al-Fitr National Religious Holiday (HBKN) period. Annually, core inflation in March 2026 was 2.52% (yoy), down from the previous month’s 2.63% (yoy). The volatile food group in March 2026 experienced inflation of 1.58% (mtm), a decrease from the previous month’s 2.50% (mtm). Inflation in the volatile food group was mainly contributed by commodities such as broiler chicken meat, rice, and broiler eggs, in line with increased demand during the Eid al-Fitr HBKN period. Annually, the volatile food group experienced inflation of 4.24% (yoy), lower than the previous month’s 4.64% (yoy). “Moving forward, volatile food inflation is projected to be controlled, supported by close synergy between Bank Indonesia and TPIP and TPID, as well as strengthened implementation of the Inflation Control and Prosperous Food Movement (GPIPS),” said Ramdan. Meanwhile, the administered prices group in March 2026 experienced inflation of 0.31% (mtm), an increase from the previous month’s deflation of 0.03% (mtm). The inflation was mainly contributed by commodities such as petrol and intercity transport fares, in line with adjustments to non-subsidised fuel oil (BBM) prices and increased mobility during the Eid al-Fitr HBKN period. Annually, the administered prices group recorded inflation of 6.08% (yoy), lower than the previous month’s 12.66% (yoy).