Strategic Solutions to Tackle Post-Eid al-Adha Inflation

The celebration of Eid al-Adha in Indonesia has historically correlated with fluctuations in the Consumer Price Index (CPI). As a major religious event, Eid al-Adha can contribute to seasonal inflation through various economic transmission channels. Price increases during Eid al-Adha are typically driven by demand-pull inflation, where demand surges sharply while supply remains stagnant or faces distribution constraints. Key contributing factors include: To curb inflation and keep it within target, coordination between the central government, local authorities, and monetary authorities through the following measures is required: Overall, although Eid al-Adha exerts pressure on inflation, the impact is temporary. With strong coordination through the Central and Regional Inflation Control Teams (TPIP and TPID), price stability is expected to be maintained, preserving consumers’ purchasing power. Ahead of the 1447 Hijriah Eid al-Adha, prices of essential commodities in several traditional markets across East Priangan, West Java, have been observed rising. Tangsel City Government anticipates psychological price increases and hazardous substances in traditional markets ahead of Eid al-Adha 2026 through inspections and producer training. Government subsidies are an effective measure to curb food price spikes in the market, provided the national budget allows. Several traditional markets in Batam City have experienced significant price fluctuations in the past week. Minister of Trade Budi Santoso confirmed that Minyakita stocks are secure despite distribution challenges in certain areas, particularly in eastern Indonesia such as Papua and Maluku.