Volatile Food Inflation Increases, BI Beware Of Spike In Food Prices

Illustration. (Photo: Doc. Antara)

JAKARTA - Bank Indonesia (BI) Governor Perry Warjiyo reminded to be aware of food inflation or volatile food, which has recently shown an upward trend.

According to him, food prices that tend to fluctuate began to increase even in October 2025, inflation in this group was recorded at 6.59 percent, mainly driven by an increase in the prices of several basic commodities such as red chilies and broiler eggs.

Data from the Central Statistics Agency (BPS) shows that the food, beverage and tobacco sector is the largest contributor to inflation, reaching 6.59 percent on an annual basis (YoY) with a contribution of 1.05 percent, due to the increase in the price of red chilies, rice, onions, and broiler meat.

"Further coordination is needed between BI and also the central and regional governments," he said during a working meeting with Commission XI of the DPR, Wednesday, November 12.

Furthermore, Perry estimates that overall inflation in 2025-2026 will remain low, in the target range of 2.5 percent plus minus 1 percent, as core inflation, inflation expectations, and import inflation are expected to remain under control.

"Of course, controlled inflation requires closer coordination in the inflation control team, both central, regional and implementation of the national movement to control food inflation," he said.