Indonesia’s annual inflation accelerated to 3.08% in May 2026 from an eight-month low of 2.42% in the prior month, surpassing market expectations of 2.97%. Despite the pickup, inflation remained within the central bank’s target range of 1-1/2% to 3-1/2%. Food prices rose the most in eight months (4.94% vs 3.06% in April), driven by higher staple costs and elevated distribution expenses across several regions. Additional upward pressures also came from housing (1.0% vs 0.74%), transport (2.30% vs 1.61%), clothing (0.84% vs 0.79%), furnishings (0.98% vs 0.60%), healthcare (1.70% vs 1.49%), communication (0.97% vs 0.83%), recreation (1.30% vs 1.19%), education (1.15% vs 1.14%), and restaurants (2.34% vs 1.93%). Core inflation, which strips out volatile food and administered prices, quickened to a three-month high of 2.59% from 2.44% in April. On a monthly basis, consumer prices increased 0.28%, up from a 0.13% rise in April and well above forecasts of 0.14%.