Unusual! Gold Jewellery Contributes to Inflationary Pressure During Ramadan 2026 in Indonesia
Jakarta — Indonesia’s Ramadan 2026 period has presented an unusual development in commodity price movements. Whilst volatile food commodities have traditionally been the primary driver of inflation during Ramadan, gold jewellery has now emerged as an additional contributor to inflationary pressures.
The Statistics Agency (BPS) noted that the volatile food sector routinely amplifies inflation during Ramadan. In February 2026, monthly inflation reached 0.68%, which remains lower than the corresponding Ramadan period in the previous year, which had spiked higher.
“Looking at last year, month-to-month inflation during the Ramadan period reached 1.65%. This year is relatively improved, not as high as last year’s Ramadan,” said BPS Head Amalia Adininggar Widyasanti during an inflation coordination meeting on Tuesday, 3 March 2026.
Food commodities emerged as the dominant contributor to February inflation. Price increases occurred across major food items sensitive to demand surges, including broiler chicken, bird’s eye chilli, fresh fish, red chilli, and tomatoes—a pattern consistent with Ramadan’s typical inflationary pressures.
“The commodities within the volatile food price group are those that typically contribute to monthly inflation during each Ramadan period,” she explained.
However, Amalia emphasised a significant divergence from previous years: gold jewellery has emerged as a novel contributor to monthly inflation this year.
“Unlike 2022 and 2023, gold prices have continuously risen since 2024. In February 2026, gold jewellery became a contributor to monthly inflation,” Amalia stated.
The surge in gold prices has occurred alongside strengthening international prices, which have been transmitted to the domestic market.
“Gold jewellery inflation on a month-to-month basis reached 8.42% with a contribution of 0.19%. Personal care and other services experienced inflation of 2.55%,” she noted.
Gold price movements fall outside the scope of domestic policy control due to their dependence on global market dynamics. Consequently, policy focus remains directed at food price stabilisation.
“Our focus must be on how to control volatile food components and the food and beverage group,” she stressed.
With Ramadan still ongoing, stabilising the food supply has become crucial to maintaining controlled monthly inflation. “During each Ramadan period, volatile commodities typically contribute to monthly inflation,” Amalia concluded.