Ministry of Finance: Price Pressures Remain Controlled Amid February Inflation

Jakarta—The Ministry of Finance has stated that price pressures remain controlled despite the national economy experiencing inflation of 4.76 per cent year-on-year in February 2026.

“Fundamentally, price pressures remain controlled and are expected to return to normal in March 2026,” said Febrio Kacaribu, Director General of Economic and Fiscal Strategy at the Ministry of Finance, in a written statement in Jakarta on Monday.

Febrio explained that year-on-year inflation in February 2026 was primarily influenced by the electricity discount policy implemented in early 2025.

Excluding the impact of the electricity discount from early 2025, Febrio said, February 2026 inflation is estimated at only 2.59 per cent.

Based on its components, government-administered price inflation reached 12.66 per cent year-on-year. Meanwhile, volatile food prices reached 4.64 per cent, driven by weather disruptions and increased demand heading into Ramadan 2026.

Rice inflation remained stable at 3.5 per cent, whilst several other food commodities such as sugar, red chillies, garlic, and red peppers experienced deflation. Core inflation was recorded at 2.63 per cent year-on-year, primarily driven by a 72.95 per cent year-on-year increase in gold jewellery prices.

Excluding the impact of gold, core inflation in February 2026 is estimated at 1.4 per cent.

To control inflation, Febrio stated that the government is committed to ensuring food prices remain affordable during the Ramadan and Eid al-Fitr 2026 period.

These efforts are being carried out through strengthening supply, ensuring smooth distribution, and monitoring prices, including through a cheap food movement programme and facilitation of inter-regional distribution.

Previously, Ateng Hartono, Deputy for Statistics, Distribution, and Services at the Central Statistics Agency (BPS), reported that Indonesia’s economy experienced year-on-year inflation of 4.76 per cent in February 2026.

“There was an increase in the Consumer Price Index (CPI) from 105.48 in February 2025 to 110.50 in February 2026,” he said.

Meanwhile, monthly inflation was recorded at 0.68 per cent and calendar year inflation reached 0.53 per cent in February 2026.