June inflation driven by volatile prices, not demand: Purbaya

Jakarta (ANTARA) - Finance Minister Purbaya Yudhi Sadewa projected that Indonesia's inflationary pressures will soon subside, as the price spike in June 2026 was solely triggered by volatile food items and global fuel costs rather than overheating consumer demand.

According to data released by Statistics Indonesia (BPS), the country's year-on-year (yoy) inflation reached 3.34 percent in June 2026, while the month-to-month (mtm) inflation stood at 0.44 percent.

"Chilies and other items like that are seasonal. I hope that after global oil prices fall, the price of Pertamax will gradually decrease in line with them. So, inflationary pressures will soon subside," Purbaya stated here on Wednesday (July 1).

He emphasized that public demand remains well within a healthy range, as reflected in the country's core inflation, which stayed stable and controlled at 2.76 percent yoy and 0.23 percent mtm.

"The increase is not due to excessively rapid demand. Because the core price is still stable, these fluctuating prices should subside in the next few months," Purbaya remarked.

BPS data revealed that the transportation sector was the largest contributor to June's monthly inflation, recording a 2.29 percent increase and contributing 0.28 percent to the national figure.

The three main commodities driving this sector were gasoline (0.21 percent), airfares (0.05 percent) and engine lubricants (0.01 percent).

Meanwhile, the food, beverage, and tobacco sector experienced a 0.20 percent inflation rate, contributing 0.06 percent to the headline number.

Shallots led the price increase in this category with a 0.04 percent contribution, followed by garlic at 0.03 percent and rice at 0.02 percent.

Related news: Indonesia targets rupiah at Rp16,800-17,500 per US dollar in 2027

Related news: Easing US-Iran tensions may lower Pertamax fuel prices: Purbaya

Translator: Bayu Saputra, Yashinta Difa

Editor: Rahmad Nasution

Copyright © ANTARA 2026