Bali inflation hits 3.45% in August; Denpasar tops regional index

Denpasar, Bali — — Annual inflation in Bali rose to 3.45 percent in August 2026, with all four consumer price index regions recording price increases as the island moved through the high season for tourism, according to the Bali office of Statistics Indonesia (BPS) and Bank Indonesia’s Bali representative office.

BPS data released on 1 September showed monthly inflation of 0.61 percent, reversing a 0.51 percent deflation in July 2026, while year-to-date inflation reached 2.16 percent and the consumer price index stood at 113.41, according to local media reports citing BPS Bali.

The annual rate remained within Indonesia’s national inflation target of 2.5 percent plus or minus 1 percentage point, but was higher than the national August figure of 3.19 percent, based on central bank statistics cited in regional coverage.

Denpasar posts highest annual inflation

BPS Bali recorded annual inflation of 3.45 percent for the province, with notable differences between the four monitored districts and cities.

Denpasar posted the highest annual inflation at 3.64 percent, with a monthly increase of 0.65 percent. Buleleng (Singaraja) saw annual inflation of 3.61 percent and the strongest monthly rise, at 1.12 percent, according to a report summarising BPS figures.

Tabanan recorded annual inflation of 3.59 percent and monthly inflation of 0.33 percent. Badung had the lowest annual rate at 2.86 percent, with a monthly increase of 0.35 percent.

The reported figures for August 2026 are:

• Bali province: 3.45 percent year on year; 0.61 percent month on month; 2.16 percent year to date; CPI 113.41
• Denpasar: 3.64 percent year on year; 0.65 percent month on month; CPI 114.89
• Singaraja (Buleleng): 3.61 percent year on year; 1.12 percent month on month
• Tabanan: 3.59 percent year on year; 0.33 percent month on month
• Badung: 2.86 percent year on year; 0.35 percent month on month; CPI 109.91

Local media noted that Denpasar’s rate was the highest among Bali’s CPI areas, while Badung remained the lowest.

Tourism, food and transport underpin price pressures

Bank Indonesia’s Bali office said inflation was being driven by strong demand for goods and services during the July–September high season for international visitors, alongside other structural and seasonal factors.

Based on BPS data cited by regional business media, the main contributors to Bali’s August monthly inflation included broiler chicken meat, airfares, green beans, rice with side dishes and primary school fees.

Economic commentators quoted in local coverage also highlighted increased demand related to weddings, traditional ceremonies and cremation rituals, which can raise consumption of food items and other related services.

At the same time, some commodities recorded price declines that partially offset upward pressures, including shallots, garlic, tomatoes, fuel and certain clothing items, according to analyses of the August inflation basket.

Weather and logistics risks monitored

Bank Indonesia’s Bali representative office has warned that several risk factors could add pressure to prices in the coming months, even as current inflation remains within the national target range.

Officials pointed to the possibility that a prolonged dry season and potential strong El Niño conditions could reduce agricultural output and disrupt food supplies, which would affect food price stability if realised.

The central bank also noted that high global freight costs continue to pose a risk to distribution expenses and import prices, prompting closer coordination with provincial and local governments through regional inflation control teams.

Measures cited by Bank Indonesia include intensified market price monitoring, support for food distribution, low-cost food initiatives and strengthened inter-regional cooperation via food enterprises, with the aim of keeping Bali’s inflation within the national target corridor during 2026.

Provincial inflation at four-year high but still “controlled”

Local broadcasters and online outlets reported that Bali’s August 2026 annual inflation rate of 3.45 percent was the highest in at least four years, exceeding readings of 2.32 percent in August 2024 and 2.65 percent in August 2025.

BPS Bali officials, quoted in those reports, described the current level as relatively controlled as long as inflation does not approach 5 percent, while urging continued vigilance over food, transport and energy prices to protect household purchasing power.

Sources

• Bali Post
• RRI Denpasar
• Gatra Bali
• Bisnis.com Bali
• IDN Times Bali