Primary and Kindergarten School Fees Drive Core Inflation 0.14% in July 2026

Jakarta, CNBC Indonesia - Statistics Indonesia (BPS) recorded a month-to-month (m-to-m) deflation rate of 0.14% in July 2026. The deflation was driven by the food, beverages, and tobacco group, which experienced a deflation of 0.89%.

Deputy for Distribution and Services Statistics Ateng Hartono revealed that by component, both the core component and administered prices experienced inflation. Only the volatile price component experienced deflation.

"The July 2026 deflation was driven by the volatile component. The volatile component deflated by 1.68%, contributing 0.28% to the deflation," Ateng explained during the BPS release on Monday (3/8/2026).

The dominant commodities contributing to deflation were shallots, red chillies, cayenne pepper, tomatoes, oranges, watermelons, purebred chicken eggs, and green mustard.

Meanwhile, the core component experienced inflation of 0.14% with a 0.09% contribution, and the administered price component experienced inflation of 0.25% with a 0.05% contribution.

"The dominant commodities for inflation were primary school fees, motorcycles, engine oil, kindergarten fees, and mobile phones," he stated.

According to Ateng, during the new academic year period, the education group experienced inflation but did not provide a significant contribution, including junior high school fees, university tuition fees, senior high school fees, family planning services, early childhood education, foreign language courses, and mathematics courses. Meanwhile, deflation in the petrol group contributed to the administered price inflation.