Jewellery Gold Deflates by 2.67 Per Cent, Pressuring May 2026 Inflation

The decline in gold prices over the last three months is starting to be reflected in the domestic inflation rate. The Indonesian Central Statistics Agency (BPS) noted that jewellery gold was the largest commodity contributing to deflation in May 2026. This condition occurred alongside the trend of weakening gold prices in the global market.

Pudji Ismartini, the Deputy for Methodology and Statistical Information at BPS, stated that jewellery gold provided a deflationary contribution of 0.06 per cent in May 202<0xA0>6. This figure is equivalent to the deflationary contribution of broiler chicken meat. Jewellery gold was also one of the factors restraining the inflation rate last month.

“The commodity providing the deepest deflationary contribution was jewellery gold. In May 2026, jewellery gold experienced deflation of 2.67% with a deflationary contribution of 0.06%,” Pudji said during a press conference on Tuesday (2/6/2026). This condition aligns with the development of gold prices in the international market, which has continued to correct over the last few months.

Nevertheless, annual gold prices remain at a high level. BPS recorded that the price of precious metal commodities still grew by 58.61 per cent annually in May 2026. However, this upward trend has begun to subside in recent months. In April 2026, precious metal prices were recorded to have decreased by 2.71 per cent compared to March 2026. Developments over the last three months show that gold prices continue to decline, though they remain higher than during the same period last year.