Indonesia’s annual inflation rose to 3.55% in January 2026 from 2.92% in the previous month, the highest level since May 2023, largely reflecting low base effects. The latest reading was below market expectations of 3.8% but slightly exceeded the central bank’s 1-1/2%–3-1/2% target range. Core inflation, which excludes administered prices and volatile food items, picked up to 2.45%, the strongest in nine months, from 2.36% in December. Monthly, consumer prices fell 0.15%, reversing a 0.64% increase in December and marking the first monthly decline since August.
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Indonesia Inflation Accelerates But Below Estimates
Indonesia’s annual inflation rose to 3.55% in January 2026 from 2.92% in the previous month, the highest level since May 2023, largely reflecting low base effects. The latest reading was below market expectations of 3.8% but slightly exceeded the central bank’s 1-1/2%–3-1/2% target range. Core inflation, which excludes administered prices and volatile food items, picked up to 2.45%, the strongest in nine months, from 2.36% in December. Monthly, consumer prices fell 0.15%, reversing a 0.64% increase in December and marking the first monthly decline since August.