Indonesia Macro Update - Inflation Update 02 Sep 2026

KBVS MACRO UPDATE
Wednesday, 2 September 2026

Food Prices Reverse Higher Amid El Niño Supply Pressures

Indonesia’s headline inflation accelerated in Aug '26, with CPI rising 0.21% MoM (Cons: 0.20%; KBVS: 0.14%; Prev: -0.14%), bringing annual inflation to 3.19% YoY (Cons: 3.12%; KBVS: 3.11%; Prev: 2.88%). Meanwhile, core inflation accelerated to 2.92% YoY (Cons: 2.86%; KBVS: 2.96%; Prev: 2.76%).

Looking ahead, with headline inflation facing continued upside risks from El Niño, which is expected to persist through 1Q27, we believe Rupiah stability and external financial conditions will remain key considerations for Bank Indonesia’s policy decisions.

 

Regards,
Khairunnisa N Syahfiraputri, Kesa Mutia Dara - KBVS Research Team

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