Indonesia ranks third for food inflation in six-country comparison

Indonesia recorded the third-highest food inflation among six countries compared by LPEM FEB UI in August 2026. Its annual rate of 3.86 per cent was below India’s 5.66 per cent and the Philippines’ 4.56 per cent.

The remaining countries had lower food inflation: Thailand at 2.99 per cent, Malaysia at 1.90 per cent and South Africa at 0.86 per cent. LPEM FEB UI noted that food spending baskets differ across countries, but said the figures indicated price pressures affecting several developing economies.

For headline inflation, Indonesia’s 3.19 per cent placed it below the Philippines at 6.15 per cent, India at 4.82 per cent and South Africa at 4.17 per cent. Thailand and Malaysia recorded lower rates of 2.53 per cent and 1.93 per cent respectively.

LPEM FEB UI identified elevated crude oil prices linked to escalating Middle East conflict and the US Federal Reserve’s continued restrictive policy stance as shared external influences. It said differences in consumption, energy subsidies, food supplies and national inflation policies helped explain the varying outcomes.

Indonesia’s energy inflation was 3.18 per cent, compared with 16.79 per cent in the Philippines. LPEM FEB UI said government commitments to keep subsidised Pertalite and Biosolar fuel prices unchanged until the end of 2026 had limited the effect of higher crude prices on Indonesian inflation. It cautioned against using energy inflation comparisons alone to judge countries’ success in controlling prices.