Consumer Price Index (CPI) of Indonesia – Inflation Took a Significant Leap in February 2026
Indonesian inflation took a significant leap in February 2026, even pushing headline inflation well above the central bank’s target range of 1.5–3.5 percent year-on-year (y/y) that it set for 2026.
Based on the latest data from Indonesia’s Statistical Agency (Badan Pusat Statistik, or BPS), annual headline inflation accelerated to 4.76 percent year-on-year (y/y), from 3.55 percent (y/y) in the preceding month. Annual headline inflation is now at its highest level since March 2023 (see Chart A).
It is interesting that we now see a spike in Indonesian inflation as the effects of last year’s electricity price discounts (peaking in January-February 2025) had artificially pulled inflation to a low level. As prices now normalize, the y/y comparison showed a disproportionate jump. And so, we now sort of see the ‘true nature’ of Indonesian inflation (albeit normalization of the electricity discount program now somewhat inflated the rate). This comes at a time when there exists severe rupiah weakness (causing imported inflation to be high) and expectations of strong demand for food products amid the Ramadan month and approaching Idul Fitri period.
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