February 2, 2026 | 05:07 pm
TEMPO.CO, Jakarta - The Central Statistics Agency (BPS) reported that inflation in January 2026 reached 3.55 percent year-on-year (yoy), an increase from the 2.92 percent recorded in December 2025. This surge in inflation was primarily attributed to the low base effect.
BPS noted that the Consumer Price Index (CPI) rose from 105.99 in January 2025 to 109.75 in January 2026. Year-on-year inflation was largely driven by the housing, water, electricity, and household fuel categories, which experienced a high inflation rate of 11.93 percent.
This group contributed 1.73 percent to the total inflation figure. "The commodity with the largest contribution to inflation within this group is the electricity tariff," stated Ateng Hartono, Deputy of Distribution and Service Statistics at BPS, during a press conference at the BPS office on Tuesday, February 2, 2026.
Meanwhile, jewelry emerged as the second dominant expenditure group contributing to January's annual inflation. This was followed by the health, food and beverage, and tobacco sectors. Although annual inflation reached 3.55 percent, January 2026 actually saw a monthly deflation of 0.15 percent compared to December 2025. Ateng explained that this discrepancy was due to the low base effect.
The low base effect occurs when the current year's inflation growth rate appears disproportionately high because the comparison figure from the previous year, January 2025, was unusually low. In January and February of the previous year, the government implemented electricity tariff discounts, which suppressed the CPI and led to a decrease in inflation during that period.
"As a result, deflation occurred in both months due to the reduction in electricity tariff discounts in January and February 2025," Ateng remarked.
He further explained that the price anomaly in January 2025 caused the CPI figure to fall below its normal trend, ultimately creating a low base for the year-on-year inflation calculation in January 2026.
Read: Indonesia's Capital Market Investors Top 21 Million in January 2026
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