Indonesia’s Inflation Remains Under Control in March 2026

RRI.CO.ID, Jakarta - Consumer price stability in Indonesia remained under control at the start of the second quarter of 2026, with inflationary pressures expected to stay within the monetary policy target range.

Bank Indonesia (BI) reported that the Consumer Price Index (CPI) in March rose 0.41 percent month-on-month. Data from the Central Bureau of Statistics (BPS) showed annual inflation at 3.48 percent year-on-year, down from 4.76 percent in February.

Executive Director of BI’s Communication Department, Ramdan Denny Prakoso, said the consistency of monetary policy and strong coordination in inflation control were key factors behind price stability.

He noted that cooperation between BI and the government through the Central and Regional Inflation Control Teams (TPIP and TPID) has reinforced the implementation of the National Food Security Program.

“In the near future, BI is confident that inflation will remain under control within the target range of 2.5±1 percent in 2026 and 2027,” Denny said in Jakarta on Thursday, April 2, 2026, as quoted on the BI's official website.

Core inflation in March stood at 0.13 percent month-to-month, down from 0.42 percent in February. On an annual basis, core inflation was 2.52 percent, lower than 2.63 percent in the previous period.

Denny explained that this development was influenced by declining global gold prices and stable inflation expectations, despite rising demand during the Eid al-Fitr holiday.

The volatile food group recorded month-to-month inflation of 1.58 percent, down from 2.50 percent in February. Year-on-year, volatile food inflation was 4.24 percent, compared with 4.64 percent previously. “Inflation in this group was mainly driven by chicken meat, rice, and eggs, in line with increased demand during Eid al-Fitr,” Denny said.

The administered prices group posted month-to-month inflation of 0.31 percent, reversing a slight 0.03 percent deflation in February. Annual inflation for this group reached 6.08 percent, down from 12.66 percent, largely due to higher prices of non-subsidized gasoline and intercity transportation fares amid increased mobility during the holiday period. ***