Indonesia's Inflation Strengthens in June 2025, Still Within Government Target

According to a report by the Central Bureau of Statistics (BPS), Indonesia experienced annual inflation of 1.87% (year-on-year/yoy) in June 2025.

The rate strengthened compared to May 2025, but remained within government projections.

"Until June, inflation is still within the government's target range," said BPS Deputy for Distribution and Service Statistics Pudji Ismartini in a press conference in Jakarta on Tuesday (1/7/2025).

Looking ahead, Pudji assessed that Indonesia's inflation rate will be influenced by economic challenges from both global and domestic factors.

"The crisis in the Middle East and the acceleration of economic growth targets can be factors that influence domestic price dynamics," she said.

Bank Indonesia aims to keep the national inflation rate this year within a range of 2.5% plus/minus 1%.

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

• Personal care and other services: 9.30% (yoy)
• Food and beverage services/restaurants: 1.95% (yoy)
• Health: 1.84% (yoy)
• Education: 1.82% (yoy)
• Food, beverages, and tobacco: 1.99% (yoy)
• Housing, water, electricity, and household fuel: 1.59% (yoy)
• Recreation, sports, and culture: 1.23% (yoy)
• Clothing and footwear: 1.01% (yoy)
• Household equipment, supplies, and routine maintenance: 0.57% (yoy)
• Transportation: 0.15% (yoy)

Only one expenditure group experienced deflation or a year-on-year price decrease in June 2025, namely the information, communication, and financial services group, which fell by 0.27% (yoy).

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

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

Commodities contributing to annual deflation or price decreases in June 2025 were red chilies, broiler chicken, garlic, scallions, chicken eggs, potatoes, cabbage, green chilies, carrots, and oranges.

Annual deflation also occurred in the prices of infant formula, powdered detergent, and liquid soap or dishwashing liquid.

In June 2025, 36 provinces experienced annual inflation and 2 provinces experienced annual deflation. The highest inflation occurred in South Papua at 3% (yoy), while the deepest deflation occurred in West Papua at -0.67% (yoy).