- Indonesia’s inflation accelerated to 0.64% MoM dan 2.92% YoY in Dec-25.
- Inflation in Dec-25 indicates strengthening domestic demand, underpinned by firmer core inflation and broad-based pressures from volatile food and administered prices.
- The inflation pickup reinforces signs of recovering household consumption, improving the outlook for investment and credit growth in 2026.
- Upside inflation risks persist from weather-related supply disruptions, geopolitical uncertainty, and base effects from electricity tariff discounts, supporting expectations that Bank Indonesia will likely hold interest rates steady at the Jan-26 meeting.
