BPS: Rise in Non-Subsidised Fuel Drives Transport Inflation by 0.61 Per Cent

The Indonesian Central Statistics Agency (BPS) recorded that the increase in non-subsidised fuel prices drove transport inflation to 0.61 per cent month-on-month in May 2026, contributing 0.07 per cent to the overall inflation rate.

Pudji Ismartini, Deputy for Methodology and Statistical Information at BPS, stated that this inflation was driven by price hikes in petrol, airfares, lubricants, and diesel, with respective inflation contributions of 0.02 per cent, 0.02 per cent, 0.01 per cent, and 0.01 per cent. This occurred alongside rising prices for several types of non-subsidised fuel and aviation turbine fuel (avtur).

Additionally, PT Pertamina (Persero) increased the price of non-subsidised LPG by approximately 19 per cent as of 18 April 2026, following international market movements. The impact of this price adjustment continued to affect consumer prices through May 2026. Meanwhile, the price of aviation turbine fuel in Indonesia increased in May 2026 compared to April 2026, with price hikes observed at every domestic operating airport.

Regarding international commodity prices, Pudji explained that palm oil prices declined compared to April 2026, following a period of continuous increases from January to April 2026. Similarly, crude oil prices underwent a correction in May 2026 after recording consecutive gains since the start of the year.

The Consumer Price Index (CPI) rose from 111.09 in April 2026 to 111.40 in May 2026, resulting in a monthly inflation rate of 0.28 per cent. Besides transport, the food, beverage, and tobacco group was a primary driver of monthly inflation, rising by 0.39 per cent with a contribution of 0.12 per cent. Key commodities driving inflation in this group included red chillies, cooking oil, shallots, tomatoes, and rice, while chicken meat, eggs, and garlic acted as deflationary pressures.

By component, core inflation rose by 0.22 per cent, providing the largest contribution of 0.14 per cent. Government-regulated prices saw inflation of 0.52 per cent, while volatile components experienced inflation of 0.22 per cent.

On an annual basis (year-on-year), the CPI rose from 108.07 in May 2025 to 111.40 in May 2026, bringing annual inflation to 3.08 per cent. This annual figure was primarily driven by the food, beverage, and tobacco group, which saw inflation of 4.94 per cent with a contribution of 1.43 per cent. Annual core inflation stood at 2.59 per cent, while government-regulated prices and volatile components recorded annual inflation rates of 2.07 per cent and 6.24 per cent, respectively.