BI Confident Inflation Will Stay Within Target Through 2027

RRI.CO.ID, Jakarta – Indonesia's central bank, Bank Indonesia (BI), assesses that inflation in September 2026 remains under control. Annual price pressures are still within the central bank’s target range.

Based on data from the Central Bureau of Statistics (BPS), Consumer Price Index (CPI) inflation in September stood at 0.30 percent month-to-month (mtm). On a year-on-year (yoy) basis, inflation reached 3.28 percent, still within the 2.5±1 percent target range.

“BI is confident that inflation will remain under control within the 2.5±1 percent target range in 2026 and 2027,” BI spokesperson Ramdan Denny Prakoso said in Jakarta on Thursday, October 1, 2026, as quoted on the central bank's official website.

BI assesses that this development reflects the consistency of monetary policy and the coordination of inflation control with the central government and local administrations through the Central and Regional Inflation Control Teams (TPIP and TPID).

The strengthening of the National Food Security Program has also been a supporting factor for price stability.

For the core component, September inflation slowed to 0.10 percent (mtm) from 0.21 percent in August. On an annual basis, core inflation fell to 2.84 percent from 2.92 percent, with tuition fees at colleges and universities among the main contributors to monthly inflation.

Rising global gold prices also contributed to annual core inflation through gold jewelry. Meanwhile, inflation expectations remained stable despite persistently high global commodity prices.

Food price pressures increased, with volatile food inflation at 1.46 percent (mtm), up from 0.88 percent in August. Bird's eye chili, red chili, broiler chicken, rice, and broiler eggs were the main contributors to inflation, in line with declining production and rising input costs.

On an annual basis, volatile food inflation reached 5.03 percent, up from 4.06 percent. BI expects food price pressures to remain under control through the combined efforts of the TPIP and TPID and the implementation of the Movement for Inflation Control and Food Security (GPIPS), including measures to anticipate the impact of El Niño.

Meanwhile, inflation in administered prices in September was close to 0 percent (mtm), following deflation of 0.33 percent the previous month. On an annual basis, inflation in this category fell to 3.25 percent from 3.32 percent, with price increases for Pertamax Turbo, Dexlite, and Pertamina Dex offset by a decrease in airfare rates. ***