Indonesia’s annual inflation eased to 2.88% in July 2026 from 3.34% in the previous month, undershooting market expectations of 3.2% and marking the lowest reading since April. The latest result remained comfortably within Bank Indonesia’s 1-1/2%–3-1/2% target range. Core inflation, which excludes volatile food and government-administered prices, held steady at 2.76% in July, unchanged from June. On a monthly basis, consumer prices declined 0.14%, reversing a 0.44% increase in June and defying estimates of a 0.1% rise. It pointed to the first monthly decline since January.