Indonesia's Annual Inflation Slows in May 2025

The Central Bureau of Statistics (BPS) reported that Indonesia experienced annual inflation of 1.60% (year-on-year/yoy) in May 2025.

This inflation rate slowed compared to the previous month, which reached 1.95% (yoy).

The following is a list of expenditure groups that experienced inflation or price increases year-on-year in May 2025, ordered from highest to lowest inflation:

* Personal care and other services: 9.24% (yoy)

* Food and beverage services/restaurants: 1.97% (yoy)

* Education: 1.88% (yoy)

* Health: 1.79% (yoy)

* Housing, water, electricity, and household fuel: 1.54% (yoy)

* Recreation, sports, and culture: 1.24% (yoy)

* Food, beverages, and tobacco: 1.03% (yoy)

* Clothing and footwear: 0.98% (yoy)

* Household equipment, supplies, and routine maintenance: 0.79% (yoy)

* Transportation: 0.18% (yoy)

On the other hand, only one expenditure group experienced deflation or a year-on-year price decrease in May 2025: information, communication, and financial services, which fell by 0.28% (yoy).

BPS noted that the commodities contributing to annual inflation or price increases in May 2025 were rice, coconut, fresh fish, instant coffee, cooking oil, ready-to-use coconut milk, hand-rolled kretek cigarettes, machine-made kretek cigarettes, and machine-made white cigarettes.

Annual inflation was also influenced by increased prices for house rent, domestic helper wages, tap water tariffs, household fuel, cars, motorcycles, school fees, rice with side dishes, and gold jewelry.

Commodities contributing to annual deflation or price decreases in May 2025 were broiler chicken, shallots, red chilies, tomatoes, chicken eggs, white cabbage, garlic, potatoes, green mustard, sweet corn, green chilies, and scallions.

Annual deflation also occurred in the prices of infant formula, liquid soap/dishwashing liquid, airfare, gasoline, and mobile phones.

In May 2025, 37 provinces experienced annual inflation, and one province experienced annual deflation.

The highest inflation occurred in Papua Pegunungan at 5.75% (yoy), while deflation occurred in West Papua at 1.51% (yoy).