Indonesian Political, Business & Finance News

Lowest National Inflation, Lampung Provincial Government Strengthens Price Control

| Source: TEMPO_ID Translated from Indonesian | Economy

The Lampung Provincial Government continues to strengthen inflation control amid price dynamics during Ramadan and Eid al-Fitr 2026. This effort is reflected in Lampung Province’s inflation achievement, recorded as the lowest nationally at 1.16% (year-on-year) in March 2026 and among the top 10 provinces with inflation of 0.15% (month-to-month).

In the Regional Inflation Control Coordination Meeting, the Head of Statistics Indonesia (BPS), Amalia Adininggar Widyasanti, stated that national inflation in March 2026 remained controlled despite coinciding with Ramadan and Eid al-Fitr. Monthly inflation (month-to-month) was recorded at 0.41%, while annual inflation (year-on-year) stood at 3.48%.

“Inflation in March 2026 was primarily driven by the food, beverages, and tobacco group with a contribution of 0.32%. This increase aligns with rising public demand during Ramadan and Eid,” said Amalia on Monday, 6 April 2026.

Nevertheless, the government is deemed successful in curbing price surges through various strategic policies, such as transport fare discounts and food distribution control. Some commodities even experienced price declines (deflation), such as air transport fares, toll road tariffs, and gold jewellery.

Meanwhile, Interior Minister Tito Karnavian emphasised that the national inflation trend shows significant improvement. According to him, annual inflation has successfully dropped from above 4% to 3.48%, still within the government’s target range of 2.5±1%.

“Inflation control must be viewed from two sides: year-on-year for the overall picture, and month-to-month for quick control measures. From February to March, inflation fell from 0.68% to 0.41%, indicating a positive trend,” he said.

Tito also highlighted that seasonal factors like Ramadan and Eid always trigger price increases, particularly in the food and transport sectors. However, government interventions have proven effective in containing inflationary pressures to prevent sharp spikes as seen in previous years.

Meanwhile, BPS noted that nationally, several food commodities still require vigilance, such as shallots, broiler chicken meat, and chicken eggs, which experienced price rises in various regions. Nonetheless, post-Eid trends show price normalisation beginning in several areas.

Specifically in Lampung Province, the low inflation achievement demonstrates the effectiveness of local government control measures alongside the Regional Inflation Control Team (TPID). Additionally, the Price Development Index (IPH) in the first week of April 2026 recorded a decline of -0.8%, signalling that prices are starting to stabilise post-Eid.

The Lampung Provincial Government is committed to maintaining price stability and public purchasing power through strengthened inter-agency synergy, regular price monitoring, and targeted interventions on strategic commodities.

With this achievement, Lampung not only demonstrates regional economic resilience but also offers hope to the public for stable prices of essential goods amid global geopolitical instability impacting the national economy.

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