FX.co ★ Indonesia Inflation Tops Expectations

Indonesia’s annual inflation rate rose to 3.08% in May 2026, up from an eight-month low of 2.42% in April and above market expectations of 2.97%. Even with this acceleration, inflation remained within Bank Indonesia’s target range of 1.5% to 3.5%. Core inflation, which excludes volatile food and administered prices, climbed to a three-month high of 2.59%, compared with 2.44% in April. On a month-on-month basis, consumer prices increased by 0.28%, accelerating from a 0.13% rise in the previous month and exceeding the projected 0.14% gain.