Indonesia Records Highest Inflation in Three Years at 4.76 Per Cent in February 2026
Indonesia has recorded its highest year-on-year inflation rate in three years. Ateng Hartono, Deputy Head of Statistics, Distribution, and Services at the Central Statistics Agency (BPS), announced that Indonesia’s economy experienced year-on-year inflation of 4.76 per cent in February 2026.
“The Consumer Price Index increased from 105.48 in February 2025 to 110.50 in February 2026,” Ateng stated in Jakarta on Monday, 2 March 2026.
Month-on-month inflation was recorded at 0.68 per cent, whilst the year-to-date inflation figure reached 0.53 per cent in February 2026. This year-on-year inflation rate is the highest recorded since December 2023, when it stood at 5.51 per cent.
The food, beverage, and tobacco sector was the largest contributor to monthly inflation in February 2026. Following a deflation of 0.15 per cent month-on-month in January 2026, Indonesia’s economy saw month-on-month inflation of 0.68 per cent in February.
“The primary driver of February 2026 month-on-month inflation is the food, beverage, and tobacco group, which contributed 0.45 per cent to inflation,” Ateng explained. This sector experienced month-on-month inflation of 1.54 per cent, with key commodities including broiler chicken, red chillies, fresh fish, red chillies, tomatoes, rice, and chicken eggs driving the increases.
Additionally, the personal care and other services sector made a significant contribution to monthly inflation, accounting for 0.19 per cent contribution with month-on-month inflation of 2.55 per cent, primarily driven by gold jewellery.
Based on component analysis, the volatile food component recorded month-on-month inflation of 2.50 per cent, contributing 0.41 per cent to overall inflation. Key commodities from this component contributing to inflation included broiler chicken, red chillies, and bird’s eye chillies.
Inflation was also driven by the core component, which recorded month-on-month inflation of 0.42 per cent with a contribution of 0.27 per cent. The primary commodities driving the core component include gold jewellery, cooking oil, automobiles, and rice with side dishes.
The transportation sector was the only expenditure group experiencing month-on-month deflation in February 2026, recording 0.11 per cent deflation with a contribution of 0.01 per cent. In component terms, government-regulated prices also experienced 0.03 per cent month-on-month deflation.
“In aggregate, this component did not contribute deflation as it approached zero per cent. However, one commodity significantly contributed deflation to government-regulated prices: petrol,” Ateng noted.