Home Affairs Minister Says July 2026 Inflation at 2.88 Pct Remains Within Ideal Range

Home Affairs Minister Tito Karnavian has stated that the annual inflation rate of 2.88 percent in July 2026 remains within the ideal range. He noted the figure aligns with the government’s target of 2.5 percent, plus or minus 1 percent, placing it within the 1.5 to 3.5 percent band.

Tito also highlighted month-to-month developments, noting a deflation of 0.14 percent from June to July 2026. “This also shows a decline, evidenced by the month-to-month inflation from June to July, which recorded a deflation or decrease of minus 0.14 percent,” he said in a written statement on Monday.

He detailed that the inflation components in July 2026 were dominated by the transportation and education sectors. Meanwhile, the food, beverages, and tobacco component remained relatively under control. Commodities influencing inflation included broiler chicken meat, red chillies, bird’s eye chillies, and broiler chicken eggs. “But important commodities such as rice and others remain relatively stable,” he added.

Although the national inflation figure remains within the government’s target range, Tito urged regional governments to stay alert. This is because several regions recorded inflation figures above 3.5 percent. These regions include West Papua Province, Aceh, Papua Pegunungan, Central Kalimantan, and Southwest Papua. At the regency level, areas experiencing rising inflation include Central Aceh, Aceh Tamiang, Labuhanbatu, Manokwari, and Banggai. At the city level, areas with high inflation are Gunungsitoli, Sorong, Banda Aceh, Sibolga, and Pematangsiantar.

In the same meeting, Tito also expressed appreciation to the Ministry of Trade for its intervention, which led to price decreases for two staple commodities: garlic and cooking oil. He noted that these two commodities had frequently contributed to inflation in the past, but were relatively under control this time. “I thank the Ministry of Trade, because it is the Ministry of Trade that regulates these two commodities,” he concluded.