- Indonesia's inflation decelerated to 2.72% YoY in Nov-25, following a period of acceleration (2.86% YoY in October 2025).
- The downward trend in rice prices is contributing to stable food inflation. The government's efforts to bolster its rice reserves appear to be effective in price control.
- Core inflation remained relatively flat in November compared to the previous month. This suggests that loan growth likely also remained subdued in November.
- This inflation rate creates room for Bank Indonesia (BI) to take an accommodative policy stance, but several other factors, including exchange rates and the trade balance, suggest that the likelihood remains evenly split.
