July 2026 Deflation Reaches 0.14 Percent, These Are the Triggering Commodities
JAKARTA – The Central Statistics Agency (BPS) recorded that Indonesia experienced deflation of 0.14 per cent month-to-month in July 2026. Ateng Hartono, Deputy for Distribution and Services Statistics at BPS, said the decline in prices of several food commodities, particularly shallots and chillies, was the main factor holding back inflation at the start of the second half of the year.
“In July 2026 there was deflation of 0.14 per cent. On a monthly basis, the Consumer Price Index (CPI) fell from 111.89 in June 2026 to 111.73 in July 2026,” Ateng said at a press conference at the BPS office in Jakarta on Monday (3/8/2026).
Despite monthly deflation, Ateng said annual inflation remained positive. On a year-on-year basis, inflation stood at 2.88 per cent, whilst calendar year inflation (year-to-date) was recorded at 1.65 per cent.
According to Ateng, the food, beverages and tobacco group was the largest contributor to the July 2026 deflation. This group experienced deflation of 0.89 per cent, contributing 0.26 per cent to the overall figure.
“The commodities that dominantly drove deflation in this group were shallots, with a deflation contribution of 0.11 per cent. Red chillies and bird’s eye chillies each contributed 0.06 per cent to deflation,” Ateng continued.
In addition, eggs and tomatoes each contributed 0.03 per cent to deflation, whilst oranges contributed 0.02 per cent. Ateng said the decline in food commodity prices was the dominant factor suppressing inflation in July.
BPS also recorded that the personal care and other services group experienced deflation of 0.89 per cent, contributing 0.06 per cent to overall deflation. Ateng said the fall in gold jewellery prices was the main cause.
“Deflation in the personal care and other services group was mainly driven by deflation in gold jewellery of 3.58 per cent, contributing 0.08 per cent to deflation,” Ateng said.
On the other hand, Ateng said the transport and education groups restrained the pace of deflation. The transport group experienced inflation of 0.52 per cent, contributing 0.06 per cent to inflation.
“The commodity that dominantly drove inflation in the transport group was mainly petrol, with an inflation contribution of 0.08 per cent,” Ateng said.
Meanwhile, the education group experienced inflation of 0.55 per cent, with an inflation contribution of 0.03 per cent. Ateng explained that rising education costs coinciding with the start of the new academic year were the main factor.
“The commodities that dominantly drove inflation in the education group were primarily primary school fees, kindergarten fees and tutoring costs, each contributing 0.01 per cent to inflation,” Ateng said.