Indonesia’s annual inflation accelerated to 2.37% in July 2025, up from 1.87% in June and slightly above forecasts of 2.24%, while remaining within the central bank’s target range of 1.5% to 3.5%. This marked the highest inflation rate since June 2024, driven mainly by food prices, which rose 3.75%—the largest increase in 13 months—compared to 1.99% in June. Additionally, both housing inflation (1.65% vs 1.54%) and education (1.95% vs 1.82%) accelerated. Prices moderated for transport (0.12% vs 0.18%), clothing (1.94% vs 2.01%), accommodation and restaurants (1.86% vs 1.95%), and furnishing (0.52% vs 0.57%). Health inflation remained steady at 1.84%, while communication prices continued to decline (-0.31% vs -0.27%). Core inflation, which excludes administered and volatile food prices, edged down to a seven-month low of 2.32% in July, coming in below estimates of 2.37%. Monthly, the CPI rose 0.3%, following a 0.19% gain in June and slightly exceeding forecasts of a 0.21% gain.