Indonesia recorded a surprise monthly deflation in July 2026, with consumer prices falling 0.14% compared with June, according to data updated on 3 August 2026. The move marks a sharp reversal from June 2026, when the month‑over‑month inflation rate stood at 0.44%.
On a month‑over‑month basis, the latest figure shows that price pressures have not only eased but turned negative, after two consecutive months of positive gains culminating in June’s 0.44% increase versus May. The July reading of -0.14% thus represents a clear cooling in short‑term price dynamics.
The data are based on a month‑over‑month comparison, where the “actual” reading reflects the change in prices in July relative to June, and the “previous” refers to June’s change relative to May. This shift into negative territory will likely draw attention from policymakers and market participants monitoring the trajectory of inflation in Southeast Asia’s largest economy.
