FX.co ★ Indonesia Inflation Accelerates But Below Estimates

Indonesia reported an annual inflation rate of 3.55% in January 2026, climbing from 2.92% in December. This marks the highest inflation level since May 2023, primarily due to low base effects. Although slightly exceeding the central bank’s target range of 1% to 3.5%, the inflation rate came in below the anticipated market figure of 3.8%. Core inflation, which excludes regulated prices and food items with high volatility, rose to 2.45%—the most notable increase in nine months—from the previous 2.36% in December. On a monthly basis, consumer prices decreased by 0.15%, reversing the 0.64% increase observed in December and representing the first monthly downturn since August.