Indonesia’s annual inflation rate accelerated to 3.34% in June 2026 from 3.08% in May, surpassing market expectations of 3.2% and reaching its highest level since March. Despite the uptick, inflation remained within the upper band of Bank Indonesia’s target range of 1.5% to 3.5%. Core inflation, which excludes volatile food and government-administered prices, climbed to 2.76% in June from 2.59% the previous month, marking a 38‑month high. On a monthly basis, consumer prices rose by 0.44%, up from a 0.28% increase in May and above the 0.3% forecast, representing the strongest monthly gain since February.