Triggering Inflation Surge, Purbaya Says Fuel Price Hike Effect Will Fade

Finance Minister Purbaya Yudhi Sadewa has commented on the latest monthly inflation data, attributing the increase to rising fuel prices and higher costs for certain food items such as chillies. “Inflation is rising because the price of chillies and other goods are going up. These food items are seasonal,” Purbaya said when met by journalists after the inauguration of three new directors general on Wednesday (1/7/2026). He added that despite the uptick in monthly inflation, core inflation remains fairly stable. “Core inflation appears to still be stable, so the increase in inflation is more due to the rise in fuel prices and some food prices, which will disappear within a few months,” he continued. Purbaya expressed hope that the decline in global oil prices would be followed by a gradual reduction in domestic fuel prices, particularly non-subsidised fuels like Pertamax. “I hope that after world oil prices, which have already fallen, gradually the price of Pertamax will also come down, in line with world oil prices,” he said. The Central Statistics Agency previously recorded monthly inflation of 0.44% in June 2026, bringing the calendar year inflation to 1.79% and the annual rate to 3.34%. The transport sector experienced the largest inflationary pressure at 2.29%, contributing 0.28% to the overall monthly figure. Core inflation for June was recorded at 0.23%.