Indonesia's June Inflation Accelerates as Fuel Prices and Airfares Drive Transport Costs
Key Takeaways
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JAKARTA, Investortrust.id — Indonesia's annual inflation has accelerated to 3.34% in June 2026, while monthly inflation reached 0.44% on Wednesday, July 1, 2026 in Jakarta, driven mainly by higher fuel prices and airfares that lifted transportation costs during the school holiday season.
Indonesia's Consumer Price Index rose to 111.89 in June from 111.40 in May, according to Statistics Indonesia, known locally as BPS. Monthly inflation accelerated from 0.28% in May as transportation recorded the largest price increase, rising 2.29% and contributing 0.28 percentage point to overall inflation.
"The three commodities that contributed most to transportation inflation were gasoline with a 0.21 percentage point contribution, airfares with 0.05 percentage point, and engine lubricants with 0.01 percentage point," Deputy for Distribution and Services Statistics Ateng Hartono said during BPS's monthly briefing.
Ateng said the food, beverages, and tobacco category also supported June's monthly inflation, posting a 0.20% increase and contributing 0.06 percentage point to the headline figure.
Core inflation stood at 0.23% month-on-month, contributing 0.15 percentage point to overall inflation. Engine lubricants, mobile phones, and cooking oil were the main contributors.
Government-administered prices increased 1.51% from the previous month, contributing 0.27 percentage point, mainly because of higher gasoline prices and airfares.
Meanwhile, volatile food prices rose 0.14% month-on-month, adding 0.02 percentage point to inflation as shallots, garlic, and rice recorded price increases.
Annual inflation broadens
Annual inflation reached 3.34% in June, with the Consumer Price Index climbing from 108.27 a year earlier to 111.89.
Ateng said the strongest annual inflationary pressures came from food, beverages and tobacco, transportation, and personal care and other services.
Food, beverages and tobacco recorded annual inflation of 4.67%, contributing 1.36 percentage points to headline inflation. Fresh fish, rice, cooking oil, red chilies, chicken meat, bird's eye chilies, machine-made clove cigarettes, and shallots were among the largest contributors.
Personal care and other services posted annual inflation of 10.1%, contributing 0.69 percentage point.
"Inflation in the personal care and other services group mainly occurred because of higher gold jewelry prices," Ateng said.
Transportation prices increased 4.57% from a year earlier, contributing 0.55 percentage point to annual inflation, supported by higher gasoline prices, airfares, cars, motorcycles, and engine lubricants.
Core inflation reached 2.76% year-on-year, reflecting higher prices for gold jewelry, cooking oil, prepared meals with rice, mobile phones, and higher education tuition.
Government-administered prices rose 3.34% annually, driven by gasoline, airfares, machine-made clove cigarettes, and household fuels, while volatile food inflation reached 5.58%, led by red chilies, chicken meat, bird's eye chilies, and shallots.
Among Indonesia's 38 provinces, Highland Papua recorded the highest annual inflation at 7.84%, while West Sulawesi posted the lowest at 2.29%.