Jakarta. Central Statistics Agency (BPS) reported Indonesia’s annual inflation reached 3.48% in March 2026, while monthly inflation stood at 0.41%, reflecting rising food prices and seasonal demand during Ramadan and Eid.

“The inflation rate in March 2026 was recorded at 0.41% month-to-month and 3.48% year-on-year,” said Ateng Hartono, Deputy for Distribution and Services Statistics.

The consumer price index (CPI) increased to 110.95 in March, from 110.57 in February, bringing year-to-date inflation to 0.94%.

Ateng noted that several key factors shaped inflation dynamics during the month. “There were several important developments affecting prices in March, including adjustments in non-subsidized fuel prices, declining global gold prices, and increased demand during Ramadan and Eid,” he said.

The food, beverages, and tobacco category was the largest contributor to monthly inflation, rising 1.07% and contributing 0.32 percentage points. “The main contributors came from fresh fish, broiler chicken, rice, eggs, cayenne pepper, cooking oil, and beef,” Ateng said.

Fuel and mobility also played a role, with gasoline contributing 0.04 percentage points and intercity transport fares 0.03 percentage points, in line with increased travel during the festive season. “There was also a rise in public mobility and demand for several commodities during Eid,” he added.

However, inflation was partly offset by government policies. “Various stimulus programs, including transport fare discounts during Eid, helped stabilize prices,” Ateng said, noting that airfares and gold jewelry recorded deflation, each contributing 0.03 percentage points to dampen inflation.

By component, volatile prices rose 1.58%, contributing 0.27 percentage points to monthly inflation. Core inflation stood at 0.13%, while government-administered prices rose 0.31%, driven by fuel prices, transport fares, and clove cigarettes.

Regionally, 34 provinces recorded inflation, while 4 experienced deflation. Papua Pegunungan posted the highest monthly inflation at 2.57%, while Maluku recorded the deepest deflation at 0.75%.

The personal care and other services category recorded 0.21% deflation, largely due to falling gold jewelry prices, which declined 1.17% in March. “Gold jewelry prices had increased for about 30 consecutive months and only recorded deflation this month,” Ateng said.

On an annual basis, inflation was primarily driven by housing, water, electricity, and household fuels, which rose 7.24% and contributed 1.08 percentage points, largely due to electricity tariffs. Personal care and other services rose 15.32%, contributing 1.02 percentage points, while food, beverages, and tobacco recorded 3.34% inflation with a 0.99 percentage point contribution.

BPS emphasized that annual inflation remains influenced by a low base effect following electricity tariff discounts in early 2025. “Because the comparison base was relatively low, the resulting year-on-year inflation appears higher, although the impact has started to ease compared to January and February,” Ateng said.

“All components recorded annual inflation, but the influence of the low base effect in March is smaller as electricity tariffs have largely returned to normal levels,” he added.

Across provinces, annual inflation was recorded nationwide, with Aceh posting the highest rate at 5.31%, while Lampung recorded the lowest at 1.16%.

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