Indonesia inflation trends show regional variations in August 2026

The Papua Provincial Government is working to maintain an inflation rate of 3.5 percent through the end of 2026, specifically targeting stability ahead of the Christmas and New Year holidays. Acting Regional Secretary Christian Sohilait noted that Papua's current inflation is among the lowest nationally, and essential food supplies, including rice from Bulog and various chili varieties, remain secure. The provincial government plans to coordinate with regional inflation control teams to ensure price stability in distribution hubs like Jayapura and Biak Numfor.

Nationally, Indonesia's year-on-year inflation reached 3.19 percent in August 2026, driven by increases across all expenditure groups. In Java, Lebak Regency in Banten recorded the highest inflation at 4.00 percent, driven by rises in personal care, health, and transportation costs. Sumenep Regency in East Java followed closely with an inflation rate of 3.99 percent, primarily influenced by food, beverage, and tobacco expenditures.