Inflation Hits 0.44% in June, Driven by Fuel and Airfare Hikes

The Central Statistics Agency (BPS) reported that monthly inflation reached 0.44% in June 2026. Calendar year inflation stood at 1.79% and annual inflation at 3.34%.

Ateng Hartono, Deputy for Distribution and Services Statistics at BPS, stated that the monthly inflation was driven by a 2.29% increase in the transport sector, contributing 0.28% to the overall rate.

“The dominant commodities driving transport inflation were petrol, contributing 0.21%, airfares contributing 0.05%, and engine oil contributing 0.01%,” Ateng said during a BPS press release on Wednesday (1/6/2026).

Ateng explained that the inflation was pushed by rising petrol prices, airfares, and lubricant or engine oil prices. He acknowledged that the price adjustment for non-subsidised fuel had a significant impact.

“Meanwhile, the increase in airfares was driven by rising demand during the school holiday period,” he said.

In addition to transport, inflation was also contributed by the food, beverage, and tobacco group, which had an inflation rate of 0.20% and contributed 0.06% to the overall figure.

“Commodities in this group that contributed included shallots at 0.04%, garlic at 0.03%, and rice at 0.02%,” Ateng added.