Indonesia’s Inflation Reaches 2.92 Percent Throughout 2025

Key Points

• Inflation in December 2025 reached 0.64 percent (mtm) and 2.92 percent (yoy), with the CPI rising to 109.92; this monthly inflation is higher than the previous month
• The food, beverage, and tobacco group contributed the most to inflation with 1.66 percent inflation and a 0.48 percent share
• Inflation was mainly driven by volatile components, which recorded 2.74 percent inflation with a 0.45 percent share.

Jakarta – The Central Statistics Agency (BPS) recorded that in December 2025, there was monthly inflation of 0.64 percent (mtm) or an increase in the Consumer Price Index (CPI) to 109.92 from 109.22 in November 2025. Meanwhile, annual inflation was 2.92 percent yoy.

“Inflation in December 2025 was higher than in the previous month and the same month in 2024,” said Pudji Ismartini, Deputy for Distribution and Services Statistics at BPS, in a BPS release on Monday, January 5, 2026.

Furthermore, Pudji said that in terms of expenditure groups, the largest contributor to inflation in December 2025 was the food, beverage, and tobacco group, which experienced inflation of 1.66 percent, contributing 0.48 percent to inflation.

“The commodities that predominantly drove inflation in this group were cayenne pepper, which contributed 0.17 percent to inflation, chicken meat at 0.09 percent, shallots at 0.07 percent, fresh fish with an inflation contribution of 0.04 percent, and chicken eggs at 0.03 percent,” he explained.

Other commodities that contributed to inflation were gold jewelry with a contribution of 0.07 percent. This was followed by gasoline with an inflation contribution of 0.03 percent and air transportation tariffs with a contribution of 0.02 percent.

“In addition, there are commodities that contributed to deflation in December 2025, including red chili peppers with a deflation contribution of 0.03 percent,” he concluded.

In detail, based on the inflation components that occurred in December 2025, it was mainly driven by volatile components that experienced inflation of 2.74 percent with an inflation contribution of 0.45 percent.

“The commodities that predominantly contributed to volatile component inflation were cayenne pepper, broiler chicken meat, shallots, and broiler chicken eggs,” he explained.

Furthermore, the government-regulated price component experienced inflation of 0.37 percent with a contribution of 0.07 percent. The commodities that predominantly contributed to government-regulated price component inflation were air transportation tariffs and inter-city transportation tariffs.

Meanwhile, core components experienced inflation of 0.20 percent, contributing to deflation of 0.12 percent. The commodities that contributed most to inflation were gold jewelry and cooking oil.

Pudji mentioned that monthly inflation was spread across all 36 provinces. The highest inflation rate was in Aceh at 3.60 percent, while the lowest inflation rate was in North Maluku at 0.05 percent. (*)

Editor: Galih Pratama