BPS Records 0.14 Percent Inflation in July 2026, Food Prices as the Main Driver

JAKARTA - The Central Statistics Agency (BPS) recorded Indonesia experiencing deflation of 0.14 percent on a monthly basis (month to month/mtm) in July 2026.

BPS Distribution and Services Statistics Deputy Ateng Hartono said the deflation was reflected in the decline in the Consumer Price Index (CPI) in July 2026 by 111.73 or down compared to June 2026 by 111.89.

"In July 2026, deflation of 0.14 percent occurred on a monthly basis," he said in a press conference, Wednesday, August 3.

Monthly deflation mainly came from the food, beverage, and tobacco group which experienced deflation of 0.89 percent with a contribution to deflation of 0.26 percent.

A number of commodities that contributed to the main deflation of the group include red onions with a contribution of 0.11 percent, red chili and sweet peas each 0.06 percent, as well as broiler eggs and tomatoes each 0.03 percent, and oranges contribute to deflation of 0.02 percent.

Apart from the food, beverage, and tobacco group, the personal care group and other services also recorded deflation of 0.89 percent with a deflation contribution of 0.06 percent.

The deflation in this group was mainly influenced by the decline in the price of gold jewelry by 3.58 percent, which contributed to the deflation of 0.08 percent.

BPS also noted that the transportation group also contributed to the July 2026 deflation of 0.52 percent with a contribution of 0.06 percent.

Although the transportation group experienced deflation, a number of commodities in it actually experienced price increases, namely gasoline became one of the commodities that contributed the largest inflation, namely 0.08 percent.

Meanwhile, on an annual basis (year on year/yoy), the inflation rate in July 2026 was recorded at 2.88 percent. The calendar year inflation (year to date/ytd) reached 1.65 percent.

On an annual basis, the CPI increased from 108.60 in July 2025 to 111.73 in July 2026.

Ateng explained that annual inflation based on expenditure groups was mainly driven by three groups, namely food, beverages, and tobacco, which recorded inflation of 2.97 percent with a contribution to inflation of 0.87 percent.

"The commodities with the largest contribution to inflation in the food, beverage, and tobacco group are fresh fish, cooking oil, rice, machine kretek cigarettes, purebred chicken meat, red chili, beef, and hand-made kretek cigarettes," he said.

Furthermore, the transportation group experienced inflation of 5.12 percent by contributing 0.62 percent. Inflation in this group is mainly influenced by the increase in gasoline prices, air transportation tariffs, cars, lubricants or engine oil, and motorcycles.

Meanwhile, the personal care and other services group recorded the highest inflation, namely 9.04 percent, with a contribution to inflation of 0.61 percent.

"Inflation in this group mainly occurs in gold and jewelry commodities," he said.