FX.co ★ Indonesia Inflation Rate Rises to 20-Month High

In December 2025, Indonesia's annual inflation rate rose to 2.92%, up from 2.72% in November. This increase represents the highest inflation level since April 2024, though it remains securely within Bank Indonesia’s target range of 1.5% to 3.5%. The rise was largely driven by food prices, which surged at their fastest rate in three months, reaching 4.58% compared to 4.25% in November. There were also noticeable accelerations in the costs of housing (1.62% up from 1.57%), transportation (1.23% up from 0.71%), and recreation (1.17% up from 1.15%).

Conversely, inflation rates eased in several sectors. Clothing saw a decrease (0.66% down from 0.76%), as did furnishings (0.2% down from 0.23%), health (1.83% down from 2.09%), accommodation and restaurants (1.46% down from 1.5%), and education (1.22% down from 1.26%). Communication costs continued their downward trend, declining further (-0.28% compared to -0.25%).

On the other hand, core inflation—which excludes administered prices and volatile food items—reached 2.38%, marking its highest point since May, following two months of stability at 2.36%. On a monthly basis, consumer prices saw a significant increase of 0.64%, a notable rise from the 0.17% increase recorded in November, and the largest jump in eight months.