Home Affairs Minister: July Inflation at 2.88% Remains Within Ideal Range

Minister of Home Affairs Muhammad Tito Karnavian has praised the year-on-year inflation rate for July 2026, which stood at 2.88%, describing it as ideal as it falls within the government’s target range of 2.5% plus or minus 1%. He also noted a month-to-month deflation of 0.14% from June to July.

Tito detailed that the inflation components in July were dominated by the transportation and education sectors, while the food, beverage, and tobacco sector remained relatively stable. Commodities influencing the rate included chicken meat, red chillies, bird’s eye chillies, and chicken eggs.

Despite the positive national figure, the minister urged regional governments to remain cautious, as several areas recorded inflation above the 3.5% upper limit. These include the provinces of Papua Pegunungan, Aceh, Papua Barat, Papua Barat Daya, and Central Kalimantan, as well as the districts of Aceh Tengah, Aceh Tamiang, Labuhanbatu, Manokwari, and Banggai. At the city level, high inflation was observed in Gunungsitoli, Sorong, Banda Aceh, Sibolga, and Pematangsiantar.

Tito also expressed gratitude to the Ministry of Trade for its interventions that led to price reductions in two staple commodities, garlic and cooking oil, which had previously contributed to inflationary pressures.