Jakarta. Indonesia’s annual inflation accelerated sharply to 3.19% in August 2026, up from 2.28% a month earlier, driven mainly by rising food prices, gold jewelry and transportation costs.

The figure remains within the national inflation target of 2.5% ± 1%.

Indonesia’s Central Statistics Agency (BPS) recorded an increase in the consumer price index to 111.97 in August 2026 from 108.51 in the same month last year.

“Annual inflation in August 2026 stood at 3.19%, with the consumer price index rising from 108.51 in August 2025 to 111.97 in August 2026,” BPS Deputy for Distribution and Services Statistics Ateng Hartono said at a press conference at the BPS office on Tuesday.

The food, beverages and tobacco category was the largest contributor to annual inflation, recording inflation of 3.86% and contributing 1.13 percentage points to the headline rate.

“The commodities contributing the most to inflation in this category were broiler chicken, fresh fish, cooking oil, rice, machine-made kretek cigarettes, bird’s eye chili, beef, hand-rolled kretek cigarettes, machine-made white cigarettes and red chili,” Ateng said.

The personal care and other services category recorded the highest inflation among major expenditure groups at 9.25%, contributing 0.63 percentage points to annual inflation. Gold jewelry was the main driver.

Transportation prices also rose 4.79% year-on-year, contributing 0.58 percentage points to headline inflation.

“Inflation in this category was driven by gasoline, airfares, engine lubricants, motorcycles and cars,” Ateng said.

All 38 provinces recorded annual inflation in August. North Maluku posted the highest rate at 5.28%, while North Kalimantan recorded the lowest at 2.17%.

By inflation component, core inflation stood at 2.92% year-on-year and made the largest contribution to headline inflation at 1.87 percentage points. Gold jewelry, cooking oil, rice meals with side dishes, mobile phones, engine lubricants and laptops were among the main contributors.

Administered prices rose 3.32% annually and contributed 0.65 percentage points to inflation.

“The commodities contributing the most were gasoline, airfares, machine-made kretek cigarettes and household fuel,” Ateng said.

Meanwhile, volatile food prices increased 4.06% year-on-year, contributing 0.67 percentage points. Broiler chicken, rice, bird’s eye chili, beef and red chili were the main contributors to inflation in this component.

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