- Inflation accelerated to 2.65% YoY (0.21% MoM) in September 2025, driven by food prices and gold jewelry due to safe-haven demand amid economic slowdown concerns.
- Core inflation rose to 2.19% YoY, boosted by gold prices and slight demand growth, as evident in August credit and September BCA spending index data.
- Inflation is projected above 2.5% through 2025 due to low base effects, credit stimulus, strong gold prices, and a weakening Rupiah, with government initiatives like rice stabilization aiding control; the core risk is deeper Rupiah depreciation, prompting BI to balance stability and growth at its next meeting.
