Inflation Rate Trends and Forecast for Indonesia from 1990 to 2029

Indonesia faced extreme inflationary pressure during the 1997-1998 Asian financial crisis, with inflation surging to 58.4% in 1998. Currency depreciation and economic instability were key drivers. Stabilization efforts reduced inflation to 3.7% by 2000. A temporary rise to 13.1% in 2006 reflected subsidy reductions and global oil price hikes.

From 2020 onwards, inflation has been moderate, peaking at 4.1% in 2022 due to pandemic-related factors. Forecasts predict a stable inflation rate of 2.5% from 2026, reflecting improved fiscal management and resilient economic growth.