Indonesia's Annual Inflation Increases To Reach 2.37 Percent In July 2025

JAKARTA - The Central Statistics Agency (BPS) reported that annual inflation based on the Consumer Price Index (IHK) in July 2025 was recorded at 2.37 percent or an increase when compared to the previous month which was at the level of 1.87 percent.

Meanwhile, monthly inflation in July 2025 reached 0.30 percent, or an increase when compared to the previous month of 0.19 percent (mtm). Thus, calendar year inflation from January to July 2025 was recorded at 1.69 percent.

Deputy for Distribution and Services Statistics, BPS Pudji Ismartini, explained that on an annual basis, the JCI increased from 106.9 in July 2024 to 108.60 in July 2025.

"Based on this annual inflation spending group, it is mainly driven by food, beverage and tobacco groups that experience 3.75 percent inflation and contribute 1.08 percent inflation," he said at a press conference, Friday, August 1.

Pudji said that the main commodities contributing to inflation in this group include shallots, tomatoes, and rice.

In addition, other commodities that contributed significantly to inflation were gold jewelery. Followed by PAM drinking water tariffs, side dishes of rice, as well as household fuels, which overall recorded 1.65 percent inflation (yoy) and contributed 1.08 percent (yoy) to total inflation.

Meanwhile, information, communication and financial services groups recorded deflation of 0.31 percent (yoy), with a contribution to deflation of 0.02 percent (yoy).

He said that this decline was mainly caused by deflation on cell phones.

From a monthly perspective, inflation was mainly contributed by food, beverage and tobacco groups which recorded inflation of 0.74 percent (mtm) and contributed 0.22 percent (mtm) to inflation in July 2025.

Meanwhile, the main contributor commodities are rice with a share of 0.06 percent (mtm), followed by tomatoes and shallots with 0.05 percent (mtm) each, cayenne pepper 0.04 percent (mtm), gasoline 0.03 percent (mtm), and chicken eggs and basic school fees each contributed 0.02 percent (mtm).

On the other hand, there are also commodities that contribute to monthly deflation, namely air transportation rates with a deflation contribution of 0.03 percent.