Food, transport, and gold jewellery drive inflation in July 2026

The food, beverage, and tobacco group, along with transport and personal care, were the main drivers of annual inflation in July 2026. The food, beverage, and tobacco group contributed the most to inflation with a 0.87 percent share, recording a 2.97 percent year-on-year (y-o-y) increase. This was primarily influenced by fresh fish, cooking oil, rice, machine-rolled kretek cigarettes (SKM), broiler chicken meat, red chillies, and beef.

The transport group experienced a 5.12 percent y-o-y inflation, contributing 0.62 percent, mainly due to petrol, air transport fares, cars, and lubricants. Meanwhile, the personal care and other services group recorded a 9.04 percent y-o-y increase, contributing 0.61 percent, with gold jewellery being the most dominant commodity driving the price increase in this group.

Core inflation was recorded at 2.76 percent y-o-y, contributing 1.76 percent, with gold jewellery, cooking oil, rice with side dishes, mobile phones, and university tuition fees being the main contributors. Administered prices recorded 3.58 percent y-o-y inflation, contributing 0.70 percent, mainly due to petrol, air transport fares, machine-rolled kretek cigarettes, and household fuel. Volatile food inflation was recorded at 2.52 percent y-o-y, contributing 0.42 percent, with pressure coming from rice, broiler chicken meat, red chillies, and beef. Regionally, all provinces experienced annual price increases, with West Papua recording the highest rate and South Papua the lowest.