Indef: February 2026 Annual Inflation at 4.76%, Food Prices Ahead of Ramadan as a Driver

Jakarta — Inflationary pressures intensified again ahead of the Ramadan and Eid al-Fitr periods in 2026. The increase was driven mainly by administered prices set by government policy and by volatility in domestic food prices, according to data compiled by the Centre of Food, Energy and Sustainable Development (CFESD) at the Institute for Development of Economics and Finance (Indef). February 2026 recorded a year-on-year inflation rate of 4.76%. The rise was led by administered prices, which jumped 12.66% year on year. In addition, the volatile food group also climbed as households prepare for higher consumption during the fasting period. Abra Talattov, Head of CFESD at Indef, said the uptick in inflation early in 2026 signals renewed price pressures in several key components. He noted that the acceleration in administered prices was also visible on a monthly basis, indicating price adjustments that directly affect headline inflation. Besides administered prices, inflationary pressure also stemmed from the food group, which tends to be volatile. In early 2026, several strategic food commodities again posted price increases. Meanwhile, sugar and cooking oil also showed rising trends, though not as pronounced as rice. The report indicates that this situation suggests that the earlier price stabilisation in the food sector has not become permanent.