Indonesia’s annual inflation eased slightly to 3.23% in October 2026 from 3.28% in September, Central Statistics Indonesia (BPS) reported on Monday. The result keeps price growth within the government’s target band of 2.5% ± 1%, with food, transportation and personal care costs driving the index.
Addressing reporters at a hybrid press conference at agency headquarters, BPS Deputy for Distribution and Services Statistics Ateng Hartono noted that the national consumer price index climbed to 112.56 in October 2026 from 109.04 a year earlier. Across the provinces, annual inflation ranged from a low of 2.52% in Jakarta to a peak of 8.07% in North Sulawesi.
By expenditure group, food, beverages and tobacco added 1.4 percentage points to headline inflation as prices climbed 4.82% year-on-year. Ateng identified bird’s eye chilli, fresh fish, rice, cooking oil, broiler chicken, machine-made kretek cigarettes and beef as the primary upward drivers within the basket.
Food and Household Staples Drive Index Gains
Expenditure on food, beverages and tobacco delivered the biggest push to the national headline rate, climbing 4.82 per cent year-on-year and contributing 1.40 percentage points to the total figure. Within this basket, agency officials identified bird’s eye chilli, fresh fish, milled rice, cooking oil, broiler chicken, machine-made kretek cigarettes and beef as the primary upward drivers.
The volatile food basket advanced 5.81 per cent on an annual basis, contributing 0.96 percentage points to the headline reading. That rate outstripped both core and administered components, underlining persistent retail price friction in basic wet-market and supermarket perishables.
Core inflation registered at 2.56 per cent, accounting for 1.64 percentage points of the national total. Beyond food staples such as cooking oil and rice served with side dishes, core baskets reflected price increases across gold jewellery, mobile phones, laptops and engine lubricants.
Logistics and Personal Care Add Broad Pressure
Transportation recorded the second-largest category contribution, rising 4.87 per cent annually and adding 0.59 percentage points to the aggregate print. Higher domestic outlays for gasoline, air passenger fares, engine lubricants, motorcycles, private vehicles and workshop maintenance services drove the sector upward.
Administered prices regulated by public authorities advanced 3.24 per cent year-on-year, contributing 0.63 percentage points. Gasoline tariffs, commercial aviation tickets, kretek cigarettes and domestic household fuels drove the bulk of that index basket.
Personal care and miscellaneous services advanced 4.52 per cent, contributing 0.32 percentage points to the annual print. Central Statistics Indonesia Deputy for Distribution and Services Statistics Ateng Hartono noted that higher retail prices for gold jewellery underpinned gains across the personal goods category.
“The annual inflation rate in October 2026 stood at 3.23%, with the consumer price index rising from 109.04 in October 2025 to 112.56 in October 2026,”
Regional Divergence Across the Archipelago
Price trends fractured across island markets. North Sulawesi posted the steepest annual inflation rate in the country at 8.07 per cent, driven by elevated regional distribution costs and local food price increases. Jakarta recorded the lowest annual figure among all provinces at 2.52 per cent, benefiting from tighter supply-chain integration and dense modern grocery retail infrastructure.
For consumer goods manufacturers and retail chains, persistent inflation across staple groceries and vehicle running costs constrains discretionary purchasing power outside top-tier urban centres. While top-line inflation sits within official macroeconomic thresholds, the sticky 5.81 per cent climb in volatile food forces middle-income households to divert cash from apparel, electronics and dining toward fundamental pantry items.
The factory side of the domestic economy showed counterbalancing strength. Indonesia’s Manufacturing Purchasing Managers’ Index rose to 54.0 in October from 52.4 in September, indicating expanding factory output and rising order volumes across consumer goods producers.
Preceding Trajectory and Factory Output
The October print marks a fractional deceleration after two straight months of accelerating cost pressure. Annual inflation had risen to 3.19 per cent in August before quickening to 3.28 per cent in September on food and fuel adjustments.
Broader external trade data also reflected shifting domestic demand. Indonesia logged a merchandise trade surplus of $3.36 billion in September, based on exports of $27.59 billion and imports of $24.23 billion.
Consumer product groups and retail operators now track the upcoming November harvest yields and regional logistics fuel costs to determine whether volatile food inflation eases back toward the central bank’s midpoint target.
