Indonesia Records 0.19% Inflation in June 2025, Driven by Food and Airfare Prices
Main Takeaways
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JAKARTA, Investortrust.id – Indonesia’s inflation reached 0.19% in June 2025 on a monthly basis and 1.87% year-on-year, according to the Central Statistics Agency (BPS), with the rise largely driven by food prices and airfares during holiday and religious celebrations.
Deputy for Distribution and Services Statistics at BPS Pudji Ismartini said the Consumer Price Index (CPI) rose from 108.07 in May to 108.27 in June, bringing year-to-date inflation to 1.38%.
“The main contributor to monthly inflation was the food, beverages, and tobacco group, which posted a 0.46% rise and contributed 0.13 percentage points,” Pudji said during an online press briefing on Tuesday, July 1. “Rice alone contributed 0.04%.”
Holiday and Travel Demand Behind Price Pressures
Price increases were also seen in airfare (0.04%), bird’s eye chili (0.03%), shallots, tomatoes, and gold jewelry (each 0.02%). In contrast, red chili and garlic each contributed -0.03% to deflation, while gasoline contributed -0.02%.
Core inflation rose 0.07% with a 0.04% contribution, dominated by gold jewelry. Prices regulated by the government increased by 0.09% with a 0.02% contribution, largely due to higher costs for air transport, household fuel, and machine-rolled clove cigarettes (SKM).
“Airfare rose 5.81% and contributed 0.04 percentage points to the inflation rate,” Pudji explained. “Meanwhile, sea and train transport recorded deflation of 16.96% and 4.2%, respectively, due to promotional discounts.”
The volatile food component recorded a 0.77% increase, contributing 0.13 points, mainly from rice, bird’s eye chili, shallots, and tomatoes. Rice alone rose 1% in June and contributed 0.04% to inflation in this group.
Regional Differences in Inflation
Inflation was recorded in 26 provinces, while 12 provinces experienced deflation. The highest monthly inflation was in Maluku Province at 0.97%, while the steepest deflation occurred in the Papua Pegunungan Province at -1.5%.
BPS attributed June’s inflation pressures to a combination of seasonal factors, including Iduladha celebrations, Islamic New Year 1447 H, school holidays, and adjustments in non-subsidized fuel prices such as Pertamax, Dexlite, Pertamax Turbo, and Pertamina Dex.