Indonesia’s annual inflation reaches 3.28 per cent in September
Home Affairs Minister Tito Karnavian said inflation remained within the government’s target, while drought-related chilli shortages pushed up food prices.
Indonesia recorded annual inflation of 3.28 per cent in September 2026, a level Home Affairs Minister Tito Karnavian said was within the government’s target. He said price policy needed to protect consumers’ purchasing power without undermining producers’ incomes.
The government also reported a 0.30 per cent rise in monthly inflation between August and September. Food and beverages were the leading contributor, driven by higher chilli prices. Tito attributed the increase to drought in several major growing areas, which reduced production and temporarily left supply short of market demand.
To address supply pressures, the government is encouraging more chilli planting in urban and rural areas. Tito said ministries and local administrations would coordinate monitoring of food prices as part of efforts to keep inflation within the established targets.
The minister said inflation that was too low could hurt earnings for farmers, fishermen and business operators. At the other extreme, he said, excessive price increases could weaken purchasing power, with low-income households particularly affected.
