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Home Economic

Indonesia July Inflation Driven by Food Prices, Led by Rice and Tomatoes

by Raidi
2025-08-01
in Economic
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Indonesia's inflation

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Jakarta, Indonesia Sentinel — Indonesia Central Statistics Agency (BPS) reported that several staple food items were the primary drivers of monthly inflation in July 2025. This staple food including rice, tomatoes, shallots, bird’s eye chilies, and broiler eggs.

BPS recorded a month-on-month (mtm) inflation rate of 0.3% for July, with the Consumer Price Index (CPI) rising from 108.27 in June to 108.60 in July.

According to BPS Deputy for Distribution and Services Statistics, Pudji Ismartini, the largest contributor to July’s inflation was the food, beverages, and tobacco expenditure group.

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“The expenditure group that contributed most to monthly inflation was food, beverages, and tobacco, with an inflation rate of 0.74% and a contribution of 0.22 percentage points,” Pudji said in a press briefing in Jakarta on Friday (August 1), as reported by Antara.

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Within this group, rice emerged as the largest contributor, accounting for 0.06 percentage points of the inflation. Tomatoes and shallots followed with each contributing 0.05 percentage points, while bird’s eye chilies added 0.04 and broiler eggs 0.02 percentage points.

Outside the food group, gasoline and elementary school tuition were also among the top inflation contributors in July, adding 0.03 and 0.02 percentage points respectively.

Based on the component, Pudji noted that the spike in July’s inflation was primarily driven by the volatile prices component. This component rose by 1.25% and contributed 0.20 percentage points, more than any other component.

“Key commodities that drove inflation in the volatile prices category were rice, tomatoes, shallots, and bird’s eye chilies,” she said.

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The core inflation component followed with a 0.13% increase, contributing 0.08 percentage points. This was mainly due to rising education costs, including tuition fees for elementary, junior high, and senior high schools, as well as kindergarten and tutoring expenses.

Meanwhile, government-regulated prices rose by 0.09% in July, contributing 0.02 percentage points to overall inflation. The main contributors in this category were gasoline, household fuel, and machine-made clove cigarettes.

 

(Raidi/Agung)

Tags: BPSIndonesiaIndonesia newsInflationrice
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