September 1, 2026 | 01:31 pm
TEMPO.CO, Jakarta – Indonesia recorded annual inflation of 3.19 percent in August 2026, up from 2.88 percent a month earlier, driven mainly by higher prices for food, gold jewelry, and transportation.
The Central Statistics Agency (BPS) reported the figure at a press conference in Jakarta on Tuesday, September 1. BPS Deputy for Distribution and Services Statistics Ateng Hartono said the Consumer Price Index (CPI) rose to 111.97 in August 2026 from 108.51 in the same month last year.
“Consumer prices increased from 108.51 in August 2025 to 111.97 in August 2026,” Ateng said.
Food Prices Drive Inflation
By spending category, the food, beverages, and tobacco group was the largest contributor to annual inflation. The group recorded inflation of 3.86 percent and contributed 1.13 percentage points to the overall rate.
The main contributors included chicken, fresh fish, cooking oil, rice, and machine-made kretek cigarettes. Higher prices for bird’s eye chilies, beef, hand-rolled kretek cigarettes, white cigarettes, and red chilies also contributed to inflation in the group.
The second-largest contributor was personal care and other services, which recorded annual inflation of 9.25 percent and contributed 0.63 percentage points. The increase was primarily driven by higher gold jewelry prices.
Transportation was another significant contributor. The category recorded annual inflation of 4.79 percent in August, contributing 0.58 percentage points to the overall inflation rate.
“Inflation in this group was mainly driven by gasoline, airfares, lubricants or engine oil, motorcycles, and cars,” Ateng said.
All Inflation Components Rise
All three components recorded annual inflation in August.
Core inflation, which excludes more volatile items, stood at 2.92 percent. Administered prices, which are influenced by government policies, rose 3.32 percent, while volatile prices increased 4.06 percent year on year.
Monthly Inflation Also Accelerates
On a monthly basis, Indonesia recorded inflation of 0.21 percent in August 2026, higher than the 0.14 percent recorded in July.
The monthly increase reflected a rise in the CPI from 111.73 in July to 111.97 in August.
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