Indonesia’s annual inflation dropped noticeably to 2.42% in April 2026 from 3.48% in the prior month, marking the lowest level since August 2025 and remaining comfortably within the central bank's 1-1/2%–3-1/2% target range. The moderation was driven by softer price growth in key components, particularly food (3.06% vs 3.34% in March) and housing (0.74% vs 7.24%). Meanwhile, inflation held steady for healthcare (at 1.49%) and education (at 1.14%). Several categories saw firmer price pressures, including clothing (0.79% vs 0.65%), furnishings (0.60% vs 0.24%), transport (1.61% vs 0.61%), recreation (1.19% vs 1.08%), and restaurants (1.93% vs 1.42%). Also, communication prices rebounded (0.83% vs -0.03%). Core inflation, which strips out volatile food and administered prices, eased to 2.44% from March's 2.52%, indicating the softest figure in four months. On a monthly basis, consumer prices rose 0.13%, slowing from a 0.41% gain in March and signaling the mildest pace in three months.