Government Warns of Food Price Hikes Due to Weather Changes

The Coordinating Ministry for Economic Affairs has warned that volatile food prices, influenced by weather changes, are a key factor to monitor following a rise in Indonesia’s inflation rate. Coordinating Ministry for Economic Affairs Secretary Susiwijono Moegiarso stated that inflation climbed to 3.34% in June 2026, driven by administered prices and volatile food costs. “We must be vigilant, especially regarding volatile food, as it is affected by the seasons and so forth,” Susiwijono said. He explained that the increase in the administered price component was mainly due to higher non-subsidised fuel prices and airfares. The surge in ticket prices occurred despite government efforts, as it coincided with a peak holiday season when bookings had already been made far in advance. Despite the headline inflation increase, Susiwijono noted that core inflation remains well-controlled at 2.7%, suggesting that underlying demand and purchasing power are still relatively strong.