Indonesia inflation rises in Berau and Bali due to chicken prices

Inflation rates in parts of Indonesia, specifically Berau and Bali, were driven by rising food prices and seasonal demand in August 2026.

In Berau, the monthly inflation rate reached 0.46 percent. A primary driver was the increased cost of commercial chicken meat, which rose to approximately Rp 40,000 per kilogram from a normal range of Rp 32,000. This price surge is attributed to high demand from the Free Nutritious Meal (MBG) program. Other contributors to inflation in the region included fresh shrimp and rice.

In Bali, the monthly inflation rate was recorded at 0.61 percent, reversing a deflationary trend seen in July. The increase was linked to rising airfare costs during the peak tourism season and higher demand for chicken meat due to community activities such as weddings and traditional ceremonies. The normalization of demand for the Free Nutritious Meal (MBG) program also contributed to food price pressures. Bali's year-on-year inflation stood at 3.45 percent, exceeding the national average of 3.19 percent.