02 Sep 2026 | News & Feature

CPI: An upcoming test

  • Indonesia’s CPI inflation rose to 3.19% YoY in Aug-26, driven by an increase in food prices, gold prices and lingering transportation costs.
  • Core inflation picked up to 2.92%, however this uptick was rather driven by an increase in gold price rather than strengthening consumer demand.
  • Both the Rupiah and the new BI Governor’s vision may soon be put to the test as Dollar regaining strengths following a more hawkish Fed and higher global long-term yield.