BPS Bali: Bumper Harvest and High Demand Cause Food Deflation

Denpasar (ANTARA) - The Central Statistics Agency (BPS) of Bali attributes an abundant harvest and high demand to deflation in several commodities within the Food, Beverages and Tobacco group in July 2026 on a month-on-month basis.

“So the driving factor was the abundant harvest, and the weight (demand) was high for those commodities, which is why they contributed significantly to deflation,” said Agus Gede Hendrayana Hermawan, head of BPS Bali.

Speaking in Denpasar on Monday, Agus Gede noted that in July 2026 Bali experienced month-on-month deflation of 0.51 per cent, with the expenditure group contributing the most to deflation being Food, Beverages and Tobacco, which fell 2.34 per cent and contributed 0.75 percentage points to the overall decline.

The second group to experience deflation was Personal Care and Other Services, down 0.66 per cent, though its contribution was only 0.06 per cent.

“These two groups caused the deflation in July 2026, while the other groups still recorded price increases (inflation),” he said.

BPS Bali observed that this July deflation differs from the same month in previous years: in July 2023 inflation was 0.34 per cent, in 2024 it was 0.10 per cent, and in 2025 it was 0.32 per cent.

“This is the first July deflation in the last four years. The driving commodities are widely consumed — nearly everyone consumes rice, vegetables and chillies, unlike air transport, which not everyone uses — which is why food, beverages and tobacco have the most dominant influence,” Agus Gede explained.

Broken down further, he said nine main commodities contributed to the 0.51 per cent deflation: bird’s eye chilli, which deflated 31.08 per cent and contributed 0.18 percentage points; shallots, down 19.67 per cent with a contribution of 0.16 per cent; and red chilli, down 29.38 per cent with a contribution of 0.08 per cent.

These were followed by broiler chicken, deflating 3.01 per cent with a 0.08 per cent contribution; long beans, down 33.38 per cent contributing 0.04 per cent; pork, down 3.71 per cent contributing 0.04 per cent; tomatoes, down 16.03 per cent contributing 0.04 per cent; yard-long beans, down 26.13 per cent contributing 0.02 per cent; and oranges, down 8.86 per cent with a 0.02 per cent contribution to total deflation.

By region, BPS Bali found the deepest month-on-month deflation in July 2026 occurred in Singaraja at 0.91 per cent, followed by Badung at 0.59 per cent, Tabanan at 0.56 per cent and Denpasar at 0.30 per cent.

Agus Gede added that the deflation occurred only on a month-on-month basis; year-on-year, July 2026 against July 2025 recorded inflation of 2.42 per cent.