Annual Deflation in February 2025, a First in Two Decades

The Central Statistics Agency (BPS) reported that Indonesia experienced negative inflation or deflation of 0.09% (year-on-year/yoy) in February 2025. This is the first annual deflation in about two decades.

"According to BPS records, (yoy) deflation last occurred in March 2000, at which time deflation was 1.10%, contributed by the food commodities group," said BPS Head Amalia A. Widyasanti in a press conference on Monday (3/3/2025).

Commodities contributing to deflation or a year-on-year price decrease in February 2025 were electricity tariffs, rice, tomatoes, red chilies, broiler chicken, spring onions, jengkol (a type of bean), oranges, infant formula, liquid/dish soap, gasoline, and mobile phones.

Commodities contributing to inflation or a year-on-year price increase in February 2025 were cayenne peppers, shallots, garlic, water spinach, fresh fish, cooking oil, instant coffee, hand-rolled kretek cigarettes (SKT), machine-rolled kretek cigarettes (SKM), and machine-rolled white cigarettes (SPM).

Furthermore, inflation was also influenced by price increases in piped water tariffs, household fuel, house rent, domestic helper wages, cars, motorcycles, school fees, and gold jewelry.

The following details Indonesia's annual inflation rate by expenditure group in February 2025, ordered from highest to lowest:

* Personal care and other services: 8.43% (yoy)
* Food and beverage service/restaurants: 2.47% (yoy)
* Food, beverages, and tobacco: 2.25% (yoy)
* Education: 2.04% (yoy)
* Health: 1.79% (yoy)
* Clothing and footwear: 1.18% (yoy)
* Recreation, sports, and culture: 1.14% (yoy)
* Household equipment, appliances, and routine maintenance: 1.02% (yoy)
* Transportation: 0.94% (yoy)
* Information, communication, and financial services: -0.26% (yoy)
* Housing, water, electricity, and household fuel: -12.08% (yoy)

In February 2025, 16 provinces experienced annual inflation and 22 provinces experienced annual deflation.

The highest inflation occurred in Papua Pegunungan at 7.99% (yoy), while the deepest deflation was in West Papua at -1.98% (yoy).