07 Sep 2026 | News & Feature

TFP W36 2026: Beware of the regressive trait of inflation

  • A weaker Rupiah and rising food prices are increasingly contributing to higher domestic prices, which appear to be weighing on household consumption.
  • Worse-off households may be more exposed to the ongoing uptrend in food prices, revealing the regressive nature of the current inflationary pressures.
  • Prices also appear to be more volatile in worse-off and often more populous regions, signalling greater sensitivity to price pressures.