Bali inflation rises to 3.45% in August, highest in four years

Denpasar — Bali’s annual inflation accelerated to 3.45% in August 2026, the highest level in four years, according to the provincial statistics agency and Bank Indonesia’s Bali office. Monthly inflation reached 0.61%, reversing July’s 0.51% deflation.

The annual rate was above 2.32% in August 2024 and 2.65% in August 2025. It also exceeded Indonesia’s national inflation rate of 3.19% for August, while remaining inside Bank Indonesia’s target range of 2.5% plus or minus 1 percentage point.

Bank Indonesia’s Bali office said the province’s monthly inflation was driven by higher prices for chicken meat, airfares, green beans, rice with side dishes and primary-school fees. It said lower prices for shallots, garlic, gasoline, tomatoes and men’s crew-neck T-shirts helped limit the increase.

Food and transport were the main drivers

The food, beverages and tobacco group made the largest contribution to inflation, at 1.16 percentage points, while transport added 0.76 points, according to the provincial inflation report. Fuel was the largest single contributor, adding 0.41 percentage points after its price rose 7.92% year on year.

Bank Indonesia said the August increase reflected stronger demand during the July-September peak tourism season. It also cited demand for chicken linked to weddings, customary ceremonies and cremation ceremonies, as well as the normalization of demand for the government’s free nutritious meals programme after the school holiday.

Across the consumer-price index regions in Bali, Buleleng recorded the highest monthly inflation at 1.12% and annual inflation of 3.61%. Denpasar posted annual inflation of 3.64%, followed by Tabanan at 3.59% and Badung at 2.86%.

Inflation remained within the target band

Bank Indonesia said Bali’s inflation was still within the national target corridor and remained manageable. The provincial statistics agency said inflation can weaken purchasing power if incomes do not keep up, but it described the 3.45% rate as relatively contained.

Year to date, Bali’s inflation reached 2.16% by the end of August. The monthly rise also marked a clear shift from July, when the province recorded a 0.51% deflation amid lower prices for several food items.

For Bali, the August reading was the highest annual inflation rate in four years and one of the clearest signs yet of renewed price pressure after a mid-year easing.

Sources

• IDN Times
• Bali Media Center / Bank Indonesia Provinsi Bali