Inflation Eases, BI Confident in Stability Within Target Range

Bank Indonesia (BI) assesses that March 2026 inflation remains stable within the target range. This stability is influenced by the consistency of monetary policy and the synergy in inflation control. Coordination between BI and the central and regional governments through the Central and Regional Inflation Control Teams (TPIP and TPID) also supports this achievement. The national food resilience programme contributes as well. Executive Director of BI’s Communication Department, Ramdan Denny Prakoso, stated that future inflation is expected to remain controlled. “Going forward, Indonesia’s central bank is confident that inflation will remain controlled within the target range of 2.5% plus or minus 1% in 2026 and 2027,” said Ramdan in a statement received in Jakarta on Thursday (2/4/2026). This figure is lower compared to February 2026, which reached 4.76% year-on-year. Core inflation in March 2026 was recorded at 0.13% month-on-month. This figure declined from 0.42% in the previous month. The decline was influenced by falling global gold prices and stable inflation expectations. This occurred amid increased demand during Idul Fitri. Year-on-year, core inflation stood at 2.52%. This is lower than February’s 2.63%. Price pressures came from commodities such as broiler chicken meat, rice, and broiler eggs. Increases occurred in line with heightened demand during Idul Fitri. Year-on-year, inflation for this group was recorded at 4.24%. This figure is lower than the previous month’s 4.64%. “Going forward, volatile food inflation is projected to be controlled, supported by close synergy between Bank Indonesia and TPIP and TPID, as well as strengthened implementation of the Gerakan Pengendalian Inflasi dan Pangan Sejahtera (GPIPS),” said Ramdan. The administered prices group recorded inflation of 0.31% month-on-month. In February, this group experienced deflation of 0.03%. The increase was triggered by petrol prices and intercity transport fares. People’s mobility increased during the Idul Fitri period. Year-on-year, inflation for this group was recorded at 6.08%. This figure declined from 12.66% in the previous month.