Three-Month Consecutive Decline in Gold Prices Helps Prevent May 2026 Inflation Spike

Inflationary pressures in Indonesia were mitigated by the falling prices of jewellery gold in May 2026. According to records from the Central Bureau of Statistics (BPS), jewellery gold, which falls under the personal care and other services expenditure group, contributed a deflation of 0.05% to the general inflation component, with a deflation value of 0.74%.

“The personal care and other services group experienced deflation this May, thereby dampening inflation,” stated Pudji Ismartini, Deputy for Methodology and Statistical Information at BPS, during a press conference at the BPS Head Office in Jakarta on Tuesday (2/6/2026).

Pudji noted that jewellery gold was the primary commodity providing a deflationary contribution to this expenditure group, recording a decrease of 2.67% in May 2026. This continues a deflationary trend that began in March at 1.17% and April at 3.76%.

“Jewellery gold experienced deflation of 2.67% with a deflationary contribution of 0.06%. This commodity has undergone deflation for three consecutive months since March 2026,” said Pudji.

Meanwhile, other expenditure groups experienced inflation in May 2026. The largest increase was seen in the food, beverage, and tobacco group at 0.39% with a contribution of 0.12%. This was followed by the transport group, which saw the second-largest inflation at 0.61% with a contribution of 0.07%. Additionally, information, communication, and financial services inflation stood at 0.4% with a contribution of 0.03%.

Inflation records for all consumer expenditure groups resulted in a monthly inflation pressure of 0.28% in April 2026, a year-on-year inflation rate of 3.08%, and a calendar year inflation rate of 1.35%.