Indonesia's Inflation Slows Slightly in August 2025

According to the Central Bureau of Statistics (BPS) report, Indonesia experienced annual inflation of 2.31% (year-on-year/yoy) in August 2025.

This inflation rate slightly slowed compared to the previous month, which reached 2.37% (yoy).

The following is a list of expenditure groups that experienced inflation or price increases annually in August 2025, ordered from highest to lowest inflation:

• Personal care and other services: 8.66% (yoy)
• Education: 1.43% (yoy)
• Health: 1.91% (yoy)
• Food, beverages, and tobacco: 3.99% (yoy)
• Food and beverage service/restaurants: 1.85% (yoy)
• Housing, water, electricity, and household fuel: 1.65% (yoy)
• Recreation, sports, and culture: 1.10% (yoy)
• Clothing and footwear: 0.81% (yoy)
• Household equipment, tools, and routine maintenance: 0.42% (yoy)

Meanwhile, two expenditure groups experienced deflation or annual price decreases in August 2025: information, communication, and financial services, which decreased by 0.33% (yoy), and transportation, which decreased by 0.29% (yoy).

Commodities contributing to annual inflation or price increases in August 2025 were rice, chicken eggs, shallots, tomatoes, coconuts, fresh fish, cooking oil, instant coffee, ready-to-use coconut milk, hand-rolled kretek cigarettes (SKT), machine-rolled kretek cigarettes (SKM), and machine-rolled white cigarettes (SPM).

Annual inflation was also supported by price increases in house rent, household fuel, PAM tap water tariffs, domestic helper wages, cars, school fees, rice with side dishes, and gold jewelry.

Commodities contributing to annual deflation or price decreases in August 2025 were cayenne pepper, red chilies, potatoes, garlic, and scallions.

Annual deflation also occurred in the prices of powdered detergent, liquid soap/dishwashing soap, laundry detergent, gasoline, airfare, train fares, cell phones, and senior high school fees.

In August 2025, 37 provinces experienced annual inflation and 1 province experienced annual deflation.

The highest inflation occurred in North Sumatra at 4.42% (yoy), while deflation occurred in West Papua at 0.87% (yoy).