BPS Reports 0.14 Percent Deflation in July 2026 Driven by Food, Beverages, and Tobacco

Jakarta, VIVA – Ateng Hartono, Deputy for Distribution and Services Statistics at BPS, reported that deflation of 0.14 per cent on a month-to-month (mtm) basis occurred in July 2026.

He explained that the expenditure groups causing the deflation included food, beverages and tobacco, which recorded deflation of 0.89 per cent and contributed 0.26 percentage points to the overall figure.

“Deflation of 0.14 per cent on a monthly basis occurred in July 2026,” said Ateng at a press conference at the BPS office in Jakarta on Wednesday, 3 August 2026.

“The expenditure group driving the deflation was primarily food, beverages and tobacco, with deflation of 0.89 per cent, contributing 0.26 percentage points,” he said.

On a year-on-year (yoy) basis, Ateng reported inflation of 2.88 per cent. However, on a calendar-year or year-to-date (ytd) basis, inflation was recorded at 1.65 per cent.

He explained that, viewed by commodity, the drivers of deflation included shallots, which contributed 0.11 percentage points, and red chillies and bird’s eye chillies, each contributing 0.06 percentage points.

There were also laying hen eggs and tomatoes, each contributing 0.03 percentage points, as well as oranges, contributing 0.02 percentage points.

Ateng added that, besides the food, beverages and tobacco group, another driver of deflation came from the personal care and other services group, which recorded deflation of 0.89 per cent and contributed 0.06 percentage points.

“Deflation in the personal care and other services group was mainly driven by a 3.58 per cent decline in gold jewellery prices, contributing 0.08 percentage points to overall deflation,” he said.