Indonesia recorded its first positive headline inflation in 2025 in March. Recorded at 1,03% (yoy), headline inflation increased from -0,09% (yoy) in the previous month. The return of inflation to positive territory largely reflects the end of the 50% electricity tariff discount that took place from January to February 2025. Inflation is expected to increase slowly as various...Read more

Indonesia experienced deflation of 0,09% (yoy) in February 2025, below Bank Indonesia's target range of 1,5%-3,5%, mainly due to electricity tariff adjustments. Core inflation remained stable, indicating that the decline was not driven by weakening demand. Inflationary pressures are expected to increase in the coming months as demand increases during the fasting month and subsidies end...Read more

Headline inflation in January 2025 was recorded at 0,76% (yoy), its lowest level since 2000 and below BI's target range. This was largely influenced by electricity tariff discounts of up to 50% for certain household groups. Last month, the Fed, in line with market expectations, kept its benchmark interest rate on hold and Bank Indonesia inadvertently...Read more

October 2024 marked a decline in headline inflation to 1,71% (yoy) from 1,84% (yoy) in the previous month. Headline inflation in October 2024 reached its lowest point since November 2021 and was relatively within Bank Indonesia's inflation target of 1,5% to 3,5%. The decline in inflation was driven by the regulated price group and the volatile price group. Core inflation slightly...Read more