BPS: June Inflation Hits 3.34 Percent, Nearing Government's Upper Target Limit

The Central Statistics Agency (BPS) reported that the annual inflation rate in June 2026 reached 3.34 percent year-on-year (yoy). This figure is higher than the previous month’s 3.08 percent and is approaching the upper limit of the government’s target range of 2.5 percent plus or minus 1 percent.

“In June 2026, month-to-month inflation was 0.04 percent. Year-on-year inflation reached 3.34 percent, and calendar year inflation, or year-to-date, was 1.79 percent,” said BPS Deputy for Distribution and Services Statistics Ateng Hartono during a press conference at the BPS office in Jakarta on Wednesday (1/7/2026).

Ateng explained that the largest contributor to monthly inflation was the transportation group. Inflation in the transportation group in June 2026 reached 2.29 percent, contributing 0.28 percent to overall inflation.

“Three dominant commodities drove inflation in the transportation group: first, petrol, with an inflation contribution of 0.21 percent; second, air transport fares, with an inflation contribution of 0.05 percent; and third, engine oil, with an inflation contribution of 0.01 percent,” he stated.

Furthermore, the food, beverages, and tobacco group recorded inflation of 0.20 percent in June 2026. This group’s contribution to inflation was 0.06 percent.

“Commodities in this group that contributed to inflation were mainly shallots at 0.04 percent, garlic at 0.03 percent, and rice at 0.02 percent,” he clarified.