Indonesia’s Inflation Rate Falls to Lowest Since 2000

Key Summary:
- January-25 inflation rate stood at +0.76% YoY, a decades low
- Electricity tariff subsidy was the biggest deflationary driver
- Core inflation gradually increased due to higher gold price
The Indonesian government released its first inflation reading of 2025, where it was up +0.76% year-on-year (YoY) in January, marking the slowest growth since March 2000.
Zoom in: Headline inflation rate of +0.76% YoY (-0.76% MoM) was significantly below economists’ forecasts of +1.88% YoY and Bank Indonesia’s target range of 1.5-3.5%.