Indonesia's Inflation Strengthened in Early 2026, Highest in the Past Two Years

According to the Central Statistics Agency (BPS), Indonesia experienced an annual inflation rate of 3.55% (year-on-year/yoy) in January 2026.

This inflation rate set a new record high in the past two and a half years, precisely since May 2023, as shown in the graph.

Here is a list of spending categories that experienced inflation or price increases on an annual basis in January 2026, sorted by the highest inflation rate:

• Personal care and other services: 15.22% (yoy)
• Housing, water, electricity, and household fuel: 11.93% (yoy)
• Food, beverages, and tobacco: 1.54% (yoy)
• Healthcare: 1.62% (yoy)
• Food and beverage provision/restaurants: 1.36% (yoy)
• Education: 1.11% (yoy)
• Recreation, sports, and culture: 1.05% (yoy)
• Clothing and footwear: 0.56% (yoy)
• Transportation: 0.58% (yoy)
• Household supplies, equipment, and routine maintenance: 0.16% (yoy)

Meanwhile, there was only one spending category that experienced deflation or price decreases on an annual basis in January 2026, namely information, communication, and financial services, which decreased by 0.19% (yoy).

Commodities that experienced inflation or annual price increases at the beginning of this year include rice, fresh fish, broiler chicken, red onions, coffee powder, hand-rolled kretek cigarettes (SKT), machine-made kretek cigarettes (SKM), machine-made white cigarettes (SPM), and rice with side dishes.

Annual inflation also occurred in electricity tariffs, housing rent, housing contracts, PAM drinking water tariffs, household fuel, domestic worker wages, motorcycles, cars, school fees, and jewelry gold.

Meanwhile, commodities that experienced deflation or annual price decreases in January 2026 include red chili peppers, cayenne peppers, garlic, tomatoes, potatoes, pork, jengkol, eggplant, powdered detergent soap, fabric softener, liquid detergent, gasoline, mobile phones, and high school school fees.

In January 2026, all 38 Indonesian provinces experienced annual inflation. The highest inflation rate occurred in Aceh at 6.69% (yoy), and the lowest in Lampung at 1.90% (yoy).