Jakarta. Indonesia slipped into 0.14% monthly deflation in July, reversing 0.44% inflation in June, as falling prices of key food commodities, including shallots and chilies, outweighed higher transportation and education costs, official data showed on Monday.

Indonesia’s Central Statistics Agency (BPS) said the consumer price index (CPI) fell to 111.73 in July from 111.89 in June, while annual inflation stood at 2.88% and year-to-date inflation reached 1.65%.

"In July 2026, monthly deflation was recorded at 0.14%, with the consumer price index declining from 111.89 in June 2026 to 111.73 in July 2026," BPS Deputy for Distribution and Services Statistics Ateng Hartono said at a press conference on Monday.

The largest source of deflation came from the food, beverages, and tobacco category, which posted 0.89% deflation and contributed 0.26 percentage points to the monthly decline in consumer prices.

"The commodities that mainly drove deflation in this category were shallots, contributing 0.11 percentage points, followed by red chilies and bird's eye chilies at 0.06 percentage points each, chicken eggs and tomatoes at 0.03 percentage points each, and oranges at 0.02 percentage points," Ateng said.

The personal care and other services category also helped push overall prices lower, driven by a 3.58% drop in gold jewelry prices, which contributed 0.08 percentage points to July's deflation.

Meanwhile, transportation and education remained the main inflationary pressures during the month.

The transportation category recorded 0.52% inflation, contributing 0.06 percentage points to overall inflation. Higher gasoline prices accounted for the largest share, followed by motorcycles and lubricants.

Although non-subsidized fuel prices declined in July, Ateng said gasoline still recorded monthly inflation due to the comparison base from June.

"From June 1 to June 9, 2026, Pertamax was still priced at Rp 12,000 per liter. As a result, when July is compared with June, the average monthly price remains higher, causing gasoline prices to post monthly inflation," he said.

The education category rose 0.55%, contributing 0.03 percentage points to inflation as the new academic year began. Tuition fees for elementary schools, kindergartens, and tutoring services were the biggest contributors, while costs for junior and senior high schools, universities, PAUD, Quranic learning centers, and language and mathematics courses also increased but had a smaller impact on headline inflation.

Regionally, 27 provinces recorded deflation, while 11 provinces posted inflation in July. West Kalimantan recorded the highest monthly inflation at 0.38%, while Highland Papua experienced the deepest deflation at 1.37%.

By inflation component, volatile food prices fell 1.68%, contributing 0.28 percentage points to July's deflation, mainly due to lower prices of shallots, red chilies, bird's eye chilies, chicken eggs, tomatoes, oranges, watermelons, and mustard greens.

Core inflation, however, remained positive at 0.14%, reflecting higher prices for education services, motorcycles, lubricants, mobile phones, and tutoring services. Meanwhile, government-administered prices increased 0.25%, largely driven by gasoline.