Indonesia's April 2026 inflation controlled at 2.42 percent, government and BPS say

Indonesia's April 2026 inflation stood at 0.13 percent monthly and 2.42 percent annually. Finance Minister Purbaya Yudhi Sadewa said maintaining fuel subsidies successfully curbed energy sector inflation spikes. BPS explained non-subsidiized fuel price hikes had minimal impact.

Indonesia's Central Statistics Agency (BPS) reported April 2026 inflation at 0.13 percent month-to-month (mtm), 2.42 percent year-on-year (yoy), and 1.06 percent year-to-date (ytd). The Consumer Price Index (IHK) rose from 108.47 in April 2025 to 111.09 in April 2026.

Finance Minister Purbaya Yudhi Sadewa said inflationary pressures are easing due to government policy normalization. He stressed that maintaining fuel (BBM) subsidies amid geopolitical tensions and high global oil prices successfully controlled inflation, especially in the energy sector. "But if we let oil prices float, with BBM following world oil prices, inflation would spike high and erode purchasing power," Purbaya said at the Finance Ministry in Jakarta on Monday, May 4, 2026.

BPS Deputy for Distribution and Services Statistics Ateng Hartono explained mid-April non-subsidized BBM price hikes had insignificant impact due to their small weight. Gasoline contributed just 0.02 percent to overall monthly inflation. "Because gasoline's weight is small, its influence on inflation is relatively not that big," Ateng said in a teleconference press event the same day.

Ateng noted avtur price increases affected airfares but with limited overall impact. Passenger transport services inflation hit 15.24 percent mtm due to tariff normalization after deflation from government stimulus in Q1 2026.

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Illustration depicting surging oil prices over 115 USD due to Middle East conflict, with economic impacts on Indonesia including rupiah weakening.
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Global oil prices surpass 115 USD due to Middle East conflict

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Global crude oil prices have surpassed 115 USD per barrel, triggered by escalation in the Iran-AS-Israel war and Houthi threats. Economists warn of fiscal risks for Indonesia, including rupiah weakening to Rp17,002 per USD and potential APBN deficit. Pertamina denies rumors of non-subsidy fuel price hikes starting April 1, 2026.

CORE Indonesia projects March 2026 annual inflation at 3.5-3.6 percent, down from February's 4.76 percent. The forecast reflects a low-base effect from electricity tariffs, though Lebaran and non-subsidized fuel prices may push monthly inflation higher. Official BPS data is due on April 1, 2026.

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House Speaker Puan Maharani has urged the government to explain the reasons behind Pertamina's non-subsidi fuel price increase effective April 18, 2026. She seeks clarity on how long the hike will last and mitigation steps for the Iran-US conflict impact. Energy Minister Bahlil Lahadalia stated that non-subsidi prices follow global markets.

Coordinating Minister for the Economy Airlangga Hartarto has proposed issuing a government regulation in lieu of law (Perppu) on the 2026 state budget to President Prabowo Subianto. The proposal arises from the potential for the APBN deficit to exceed 3 percent due to surging global oil prices amid the Middle East conflict. This was presented during a full cabinet plenary session at Istana Negara in Jakarta on March 13, 2026.

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The Indonesian government is optimistic that economic growth in the first quarter of 2026 will reach 5.5-6 percent, breaking the stagnant pattern around 5 percent. Finance Minister Purbaya Yudhi Sadewa stated this at the Indonesia Economic Outlook 2026 event in Jakarta.

Tokyo's core consumer price index rose 1.8% in February, falling below the Bank of Japan's 2% target for the first time since October 2024. Prime Minister Sanae Takaichi's utility subsidies curbed household energy costs, posing a communication challenge for the central bank's planned interest rate hikes. The figure exceeded economists' median forecast of 1.7%.

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South Korea's consumer prices rose 2.2 percent in March from a year earlier, government data showed Thursday. The increase, exceeding the government's 2 percent inflation target, was mainly driven by a surge in global oil prices due to prolonged Middle East tensions. It marks the steepest rise since December's 2.3 percent, according to the Ministry of Data and Statistics.

 

 

 

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