Inflation ticks up, putting pressure on BI
The food price squeeze could persist into next year as El Nino conditions linger into early 2027, raising the risk of weaker agricultural output and further price increases.
Inflation rose in September, driven by surging food prices, according to the country's central bank. The Consumer Price Index (CPI) increased 3.28 percent year-on-year, signaling that inflation is nearing the upper limit of the Bank Indonesia's (BI) acceptable range. Food, beverages, and tobacco products were the primary factors contributing to this annual inflation surge, with higher costs for chilies, chicken, rice, and eggs leading the charge, as reported by BPS official Ateng Hartono.
Meanwhile, lower fares for air travel and reduced gold jewelry prices offered some relief to the overall price hike. However, the inflation in the food category, tracked separately by BPS, jumped to an even higher 5.03 percent, far exceeding the core inflation rate of 2.84 percent. Ateng attributed the rise in food prices to weaker horticultural production, adverse weather conditions, and increased consumer demand.
Written by urgent.news from The Jakarta Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
