Indonesia’s annual inflation rose to 3.55% in January 2026 from 2.92% in the previous month, marking the highest reading since May 2023. The latest result came in lower than market forecasts of 3.8% but slightly topped the central bank’s 1-1/2%–3-1/2% target range. Housing inflation surged sharply (11.93% vs 1.62% in December), reflecting the end of electricity subsidies. Price pressures continued for food (1.54% vs 4.58%), clothing (0.56% vs 0.66%), furnishings (0.16% vs 0.20%), health (1.62% vs 1.83%), transport (0.58% vs 1.23%), recreation (1.05% vs 1.17%), education (1.11% vs 1.22%), and restaurants (1.36% vs 1.46%), although momentum eased in several segments. In contrast, a drop in the cost of communication persisted (-0.19% vs -0.28%). Core inflation, which excludes administered prices and volatile food items, picked up to 2.45%, the strongest in nine months. Monthly, consumer prices fell 0.15%, after a 0.64% rise in December, pointing to the first monthly decline since August.