FX.co ★ Indonesia Inflation Rate Eases from 1-1/2-Year High

In November 2025, Indonesia saw its annual inflation rate decrease to 2.72% from October's 18-month high of 2.86%, still comfortably aligned within Bank Indonesia's target range of 1.5% to 3.5%. Food prices reflected the smallest increase seen in three months, rising by 4.25% compared to 4.99% in October. Meanwhile, there was a slowdown in price growth for housing (1.57% down from 1.59%) and the accommodation and restaurant sectors (1.5% from 1.61%). The decline in communication costs persisted at -0.25%. Conversely, inflation rates for furnishings and education remained stable at 0.23% and 1.26%, respectively. Inflation for clothing (rising marginally to 0.76% from 0.75%), transport (increasing to 0.71% from 0.48%), and health (escalating to 2.09% from 1.61%) intensified. The core inflation rate, which excludes administered and volatile food prices, remained unchanged for the second consecutive month at 2.36%, marking its highest level since June. Month-over-month, consumer prices increased by 0.17%, down from 0.28% in October, recording the smallest rise in three months.