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View all search resultsInflation accelerates while House approves new BI governor
The consumer price index (CPI) growth rose to 3.19 year-on-year (yoy) in August, Statistics Indonesia (BPS) official Ateng Hartono revealed in a press conference on Tuesday, well within the government’s and Bank Indonesia’s (BI) target range of 2.5 plus/minus 1 percent.
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A customer (left) picks some red chili on Dec. 7, 2025, at a supermarket in Batam, Riau Islands. Natural disasters on the northern part of Sumatra have caused red chili prices to surge to Rp 120,000 (US$7.19) per kilogram while green chili has sold at Rp 100,000 per kg. (JP/Fadli)
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nflation accelerated in August, reversing a slowdown seen in July as food and transportation prices rose, while the House of Representatives approved a new central bank governor, putting monetary stability back in focus after the surprise resignation of her predecessor.
The consumer price index (CPI) growth rose to 3.19 year-on-year (yoy) in August, Statistics Indonesia (BPS) official Ateng Hartono revealed in a press conference on Tuesday, well within the government’s and Bank Indonesia’s (BI) target range of 2.5 plus/minus 1 percent.
Read also: House commission confirms Destry as BI governor
The August rate reversed the disinflationary trend seen in July, when annual inflation slowed to 2.88 percent.
Prices in the food, beverages and tobacco group rose 3.86 percent yoy and contributed 1.13 percentage points to headline inflation, with chicken, fresh fish, cooking oil, rice, cigarettes, bird's eye chili, beef and red chili among the main contributors to food costs.
Transportation prices rose 4.79 percent and contributed to headline inflation, driven by higher gasoline prices, airfares, engine lubricants, motorcycles and cars. Personal care and other services recorded the highest inflation among the main expenditure groups at 9.25 percent yoy, largely due to higher gold jewelry prices.
Core inflation, which strips out volatile food and administered prices, stood at 2.92 percent in August. Inflation in government-administered prices was 3.32 percent, while volatile food inflation reached 4.06 percent.
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