Indonesia’s Consumer Price Index (CPI) increased on an annual basis to 2.92% YoY in December 2025, up from 2.72% YoY in November 2025. The rise in inflation was mainly driven by the volatile food component, which accelerated to 6.21% YoY in December 2025 from 5.48% YoY in November 2025, supported by higher prices of red chili and fresh fish. Core inflation rose to 2.38% YoY in December 2025, slightly higher than 2.36% YoY in November 2025, with key contributing commodities including gold jewelry, cooking oil, and housing rental costs. Meanwhile, the administered price component recorded inflation of 1.93% YoY, primarily driven by increases in PAM water tariffs, machine-made kretek cigarettes (SKM), and hand-rolled kretek cigarettes (SKT).