Inflation in Indonesia Accelerates to 1.95% in April Driven by Food and Personal Care Prices
Main Takeaways
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JAKARTA, investortrust.id — Indonesia's consumer price inflation has picked up to 1.95 percent year-on-year in April 2025, marking a sharp acceleration from March’s 1.03 percent. The rise was led by higher costs in food, electricity, and personal care, according to the national statistics office.
Statistics Indonesia, or BPS, reported that the April Consumer Price Index (CPI) stood at 108.47, up from 106.40 in April 2024. On a monthly basis, inflation reached 1.17 percent, while the year-to-date figure rose to 1.56 percent.
At the provincial level, Papua Pegunungan recorded the highest year-on-year inflation at 5.96 percent, while Papua Barat saw the lowest at just 0.15 percent. Similarly, Jayawijaya regency mirrored the provincial high at 5.96 percent, while Sorong city posted the weakest inflation nationwide at 0.12 percent.
Personal Care, Food, and Housing Drive Headline Inflation
Among the spending categories, personal care and other services posted the highest annual inflation at 9.93 percent, contributing 0.62 percentage points to the overall figure. Food, beverages, and tobacco followed with a 2.17 percent increase, driven by items such as red chili, shallots, garlic, fresh fish, and kretek cigarettes.
Housing-related costs, including water, electricity, and fuel, rose 1.60 percent year-on-year, largely due to a surge in electricity tariffs and municipal water rates. This category contributed 0.25 percentage points to the overall inflation.
Other categories such as health (1.83 percent), education (1.88 percent), and dining services (2.14 percent) also saw moderate price increases. The most significant monthly contributor to inflation came from the electricity tariff hike, which alone added 0.97 percentage points to the month-to-month figure.
Transportation, Telecoms See Price Declines
Deflationary pressure came mainly from transportation and telecommunications. The transport category saw a year-on-year decline of 0.11 percent, with notable price drops in airfares, gasoline, and intercity fares. Information and communication services recorded an even steeper deflation at 0.64 percent.
Key contributors to this decline included mobile phone charges and prepaid credit fees, which pushed the index down by 0.02 percentage points each.
Core Inflation Remains Stable
Indonesia’s core inflation, which excludes volatile and government-regulated prices, rose 2.50 percent from the previous year, signaling continued stability in underlying consumer demand. This component contributed 1.59 percentage points to the annual inflation figure.
Prices regulated by the government rose by 1.25 percent year-on-year, driven largely by electricity tariffs, while volatile food items edged up only 0.64 percent. On a monthly basis, core inflation stood at 0.31 percent.
Regional Disparities Highlight Local Price Pressures
Inflation varied widely across provinces and districts. In Sumatra, the highest provincial inflation was recorded in Aceh at 3.11 percent, while Bengkulu saw the lowest at 0.96 percent. Across Java, Jakarta led with 2.21 percent inflation, while East Java posted the lowest at 1.35 percent.
Outside Java and Sumatra, several provinces experienced significant price pressure. For instance, Papua Tengah posted 3.71 percent, and Papua Selatan 3.57 percent. In contrast, Papua Barat Daya and Papua Barat saw minimal price growth.
BPS also tracked inflation in 150 cities and regencies, all of which experienced year-on-year inflation. The standout was Jayawijaya with a 5.96 percent surge, mirroring its provincial trend. Meanwhile, Sorong recorded the softest price increase nationwide.
Demands Concern
The relatively mild inflation could signal a lack of robust domestic consumption, particularly among lower-income and middle-class households, financial economist and capital market practitioner Hans Kwee told Antara news agency on Friday in Jakarta.
“There are signs of weakened purchasing power in the lower-middle income segment, which is keeping inflation in check,” he explained.
He noted that the April inflation rate partly reflects the expiry of the government’s electricity subsidy program, which had offered a 50 percent discount during January and February 2025. The effect of this subsidy rollback began to taper off in April.
Kwee also highlighted the role of global factors, particularly the surge in gold prices triggered by escalating trade tensions between the United States and China. “Gold prices climbed due to the trade war and started to decline as markets anticipated a possible compromise,” he said.