June 2026 Inflation Hits 0.44 Percent, Fueled by Rising Fuel Prices and Aircraft Tariffs

Share: JAKARTA - The Central Statistics Agency (BPS) reported that inflation in June 2026 reached 0.44 percent on a monthly basis (month to month/mtm). BPS Distribution and Services Statistics Deputy Ateng Hartono said the monthly inflation increase was reflected in the increase in the Consumer Price Index (CPI) from 111.40 in May 2026 to 111.89 in June 2026. "In June 2026, inflation was 0.44 percent on a monthly basis or month to month. The increase in the consumer price index from 111.40 in May 2026 increased to 111.89 in June 2026," he said in a press conference, Wednesday, July 1. Meanwhile, annual inflation (year on year/yoy) was recorded at 3.34 percent, while calendar year inflation (year to date/ytd) reached 1.79 percent. He explained that the transportation expenditure group became the largest contributor to inflation in June 2026 and this group experienced inflation of 2.29 percent with a contribution to general inflation of 0.28 percent. According to Ateng, the increase in prices in the transportation group was triggered by rising gasoline prices, air transportation tariffs, and lubricants or engine oil. Inflation on gasoline commodities occurred due to adjustments in the prices of a number of non-subsidized fuel oil (BBM), including Pertamax. Meanwhile, the increase in air transportation fares is driven by the increasing demand of the community during the school holiday period in June 2026. Furthermore, Ateng detailed that gasoline is a commodity that contributes the most to the inflation of the transportation group with a contribution of 0.21 percent. Furthermore, air transportation tariffs contribute 0.05 percent, while lubricants or engine oil contribute 0.01 percent. In addition to the transportation group, the food, beverage, and tobacco group also contributed to inflation in June 2026 by recording inflation of 0.20 percent with a contribution to overall inflation of 0.06 percent. The largest commodity driving inflation in this group is red onions with a contribution of 0.04 percent, followed by garlic at 0.03 percent, and rice at 0.02 percent. Meanwhile, based on components, all components experienced monthly inflation in June 2026 with the highest consecutive contribution to inflation contributed by the government-regulated price component of 0.27 percent and an inflation rate of 1.41 percent, the core component with an inflation contribution of 0.15 percent and an inflation rate of 0.23 percent, and the volatile component with an inflation contribution of 0.02 percent and an inflation rate of 0.14 percent. According to regions, monthly inflation occurred in all provinces with the highest inflation in North Maluku Province at 2.45 percent, while the lowest inflation was in North Sumatra Province and Central Kalimantan each at 0.23 percent. On an annual basis (yoy), June 2026 inflation was recorded at 3.34 percent, up from the previous year's 1.87 percent. Based on the expenditure group, annual inflation was driven by the food, beverage, and tobacco group with an inflation contribution of 1.36 percent and an inflation rate of 4.67 percent. Followed by the personal care and other services group with an inflation contribution of 0.69 percent and an inflation rate of 10.10 percent. Based on components, on an annual basis all components experienced inflation, with the core component contributing 1.77 percent to inflation with an inflation rate of 2.76 percent, followed by the volatile component with a contribution of 0.91 percent to inflation, and the government-regulated price component with a contribution of 0.66 percent to inflation. All provinces in Indonesia experienced annual inflation with the highest inflation occurring in Papua Mountains at 7.84 percent, and the lowest inflation occurring in West Sulawesi at 2.29 percent.