Indonesia's Inflation Hits 2% in July 2025, Highest Since the Beginning of the Year

According to a report by the Central Bureau of Statistics (BPS), Indonesia experienced annual inflation of 2.37% (year-on-year/yoy) in July 2025.

The inflation rate strengthened compared to previous months and was the highest since the beginning of the year.

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 annually in July 2025, sorted from highest to lowest inflation:

• Personal care and other services: 9% (yoy)
• Education: 1.95% (yoy)
• Health: 1.94% (yoy)
• Food, beverages, and tobacco: 3.75% (yoy)
• Food and beverage service/restaurants: 1.86% (yoy)
• Housing, water, electricity, and household fuel: 1.65% (yoy)
• Recreation, sports, and culture: 1.05% (yoy)
• Clothing and footwear: 1% (yoy)
• Household equipment, tools, and routine maintenance: 0.52% (yoy)
• Transportation: 0.12% (yoy)

Only one expenditure group experienced deflation or a year-on-year price decrease in July 2025: information, communication, and financial services, which fell by 0.31% (yoy).

Commodities contributing to annual inflation or price increases in July 2025 were rice, tomatoes, shallots, ready-made coconut milk, coconut, fresh fish, instant coffee, cooking oil, machine-made kretek cigarettes, hand-rolled kretek cigarettes, and machine-made white cigarettes.

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

Commodities contributing to annual deflation or price decreases in July 2025 were red chilies, broiler chicken, potatoes, spring onions, garlic, carrots, and oranges.

Annual deflation also occurred in the prices of infant formula, liquid/dishwashing soap, powdered detergent, laundry fragrance, airfare, gasoline, train fares, sea transport fares, and mobile phones.

In July 2025, all 38 Indonesian provinces experienced annual inflation. The highest inflation occurred in South Papua at 5.45% (yoy), and the lowest in West Papua at 0.43% (yoy).