Chilli and Onion Prices Drop, Bali Records 0.51% Deflation in July 2026

The rate of price movement in Bali experienced deflation of 0.51 percent in July 2026. The Bali Provincial Central Statistics Agency (BPS) stated this was the first such occurrence in July for the last four years. Deflation was mainly triggered by the decline in chilli and shallot prices as the harvest season improved.

Head of BPS Bali Province Agus Gede Hendrayana Hermawan said July usually records inflation, albeit at a low level. “In the last four years, this is the first time July has seen deflation. But usually, even if there is inflation, it is low,” he said when met at the BPS Bali Office, Monday (3/8/2026).

Agus explained that the food, beverage, and tobacco group was the largest contributor to deflation, with a decline of 2.34 percent and a contribution of minus 0.75 percent. Meanwhile, the personal care and other services group experienced deflation of 0.66 percent with a contribution of minus 0.06 percent. According to Agus, the food group has a major influence on inflation or deflation because it is a necessity consumed by almost the entire community.

“Because these commodities are consumed by many people, almost the entire community. Because there is rice, vegetables, chillies, which everyone consumes. That is why its weight is high. It is different from, for example, air transportation, which not everyone consumes,” Agus explained.

The commodity that contributed the most to deflation in July 2026 was cayenne pepper, which experienced deflation of 31.08 percent with a contribution of minus 0.18 percent. Next, shallots fell 19.67 percent with a contribution of minus 0.16 percent, while red chillies fell 29.38 percent with a contribution of minus 0.08 percent.

Agus said the prices of shallots and chillies fell in almost all regions of Indonesia due to the increasingly good harvest season. This condition caused an abundant supply in the market, thus correcting the prices of the two commodities. “That is correct, the driving factor is the harvest. Then it has a high weight, so when these commodities [fall], it becomes deflation. Even though most other [prices] actually increased,” he said.