BPS: Annual Inflation Reaches 3.48 Percent Influenced by "Low Base Effect"

Jakarta (ANTARA) - Statistics Indonesia (BPS) states that annual inflation in March 2026 stood at 3.48 percent (year-on-year/yoy), higher than the 1.03 percent (yoy) recorded in March 2025, due to the ongoing influence of the low base effect. “As in the previous month, March 2026 inflation is slightly influenced by the low base effect. In January and February, the effect was quite significant, but in March, the low base effect has started to diminish somewhat,” said Deputy for Distribution and Services Statistics at BPS, Ateng Hartono, during the BPS Release press conference in Jakarta on Wednesday. Ateng explained that in January-February 2025, the government implemented electricity tariff discounts, causing price levels during that period to fall below the normal trend and suppressing the Consumer Price Index (CPI). Although prepaid electricity tariffs returned to normal in March 2025, discounts for postpaid tariffs continued. As a result, inflation in March 2026 appears higher, even though overall price dynamics remain aligned with fundamental trends. Ateng added that the low base effect is evident in the annual inflation figure for the housing, water, electricity, and household fuel group, which reached 7.24 percent in March 2026, contributing 1.08 percent to inflation. Furthermore, BPS reported that the food, beverages, and tobacco group experienced annual inflation of 3.34 percent, contributing 0.99 percent to inflation. Meanwhile, the information, communication, and financial services group recorded deflation of 0.03 percent, contributing nearly zero to deflation. By regional distribution, all provinces experienced annual inflation. The highest inflation occurred in Aceh at 5.31 percent, while the lowest was in Lampung at 1.16 percent. For reference, the annual CPI increased from 107.22 in March 2025 to 110.95 in March 2026. Meanwhile, monthly inflation in March was recorded at 0.41 percent (month-to-month/mtm), and calendar year inflation was 0.94 percent (year-to-date/ytd).