FX.co ★ Indonesia Inflation Rate at 16-Month High of 2.65%

In September 2025, Indonesia saw its annual inflation rate rise to 2.65%, a noticeable increase from the 2.31% recorded in August. This marked the highest rate of inflation since May 2024, yet it remained comfortably within the central bank's target range of 1.5% to 3.5%. The upturn in inflation was driven by rising costs in both food, which jumped to 5.01% from 3.99%, and health, which increased to 2.01% from August's 1.91%. Conversely, price growth moderated in sectors such as education (1.15% compared to 1.43% previously), clothing (0.79% from 0.81%), accommodation and restaurants (1.80% down from 1.85%), furnishings (0.30% from 0.42%), and housing (1.64% from 1.65%). Transport and communication prices declined at a slower rate, with transport down by -0.15% compared to -0.29% earlier, and communication down by -0.31% from -0.33%. Core inflation, which excludes volatile food and administered prices, experienced a slight increase to 2.19% in September from August’s 11-month low of 2.17%. On a monthly basis, the Consumer Price Index (CPI) increased by 0.21%, surpassing market expectations of a 0.13% rise, following a 0.8% decrease in the previous month—the first monthly drop seen in three months.