Indonesia July inflation eases to 2.88%, lowest in three months

[JAKARTA] Indonesia’s annual inflation rate slowed to 2.88 per cent in July from 3.34 per cent in June, official data showed on Monday (Aug 3), coming in below the median forecast of 3.2 per cent in a Reuters poll.

The July inflation rate was the lowest in three months.

Inflation in South-east Asia’s largest economy has stayed within the central bank’s 1.5 to 3.5 per cent target range so far in 2026.

Core inflation, which excludes volatile food prices and government-controlled prices, was at 2.76 per cent in July, close to the poll forecast of 2.8 per cent and unchanged from June.

Bank Indonesia has raised its benchmark policy rate by 100 basis points since May in order to keep inflation within that target band until 2027, as it manages inflationary risks from a weakening rupiah, global oil price volatility and the impact of the El Nino weather pattern on food supplies.

The statistics bureau will release June trade data later on Monday. REUTERS