November 4, 2025
JAKARTA – Food prices climbed to their highest level in more than two years, rising 6.6 percent year-on-year (yoy) in October, driven by surging demand for eggs and chicken, data from Statistics Indonesia (BPS) shows.
The increase, which was faster than the 6.44 percent recorded in September, was largely attributed to key food commodities such as red chili peppers, eggs and chicken, which were the biggest contributors to overall price gains, BPS deputy for distribution and services Pudji Ismartini said during a press conference on Monday.
Eggs and chicken recorded annual inflation of 4.43 percent and 1.13 percent, respectively, she said, adding that both are top contributors to monthly inflation.
“The increase in egg and chicken prices was influenced by various factors, including higher demand from nutrition fulfillment service unit [SPPG] kitchens that source their supplies from markets, retailers and wholesalers,” Pudji said, referring to kitchens that prepare daily meals under the government’s free nutritious meal program for schoolchildren.
“This is one of the indications of rising demand for eggs and chicken,” she added.
Pudji noted that production costs for broiler chicken had also been rising, including for day-old chicks (DOC), live bird prices and feed corn in several regions.
However, BPS “does not calculate inflation directly attributed to the [free meals] program,” she said, adding that inflation in regions associated with the program could not be specifically identified in the agency’s data.
The consumer price index (CPI) rose to 109.04 in October from 106.61 a year earlier, translating to headline inflation of 2.86 percent yoy, BPS data shows.
The increase was mainly driven by the food, beverages and tobacco, which climbed 4.99 percent yoy, led by red chilis, the single largest contributor to the gain.
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Outside the food group, gold jewelry prices rose 11.97 percent yoy, marking their steepest increase in more than two years and adding 0.21 percentage points to headline inflation, amid rising global gold prices.
Meanwhile, core inflation, a key gauge of purchasing power, rose 2.36 percent yoy, lifted by higher prices of gold jewelry, cooking oil and ground coffee. Administered prices increased 1.45 percent yoy, driven by higher tap water tariffs in 14 regions and machine-rolled clove cigarette prices.
On a monthly basis, inflation rose 0.28 percent month-on-month (mom), with all components recording increases, mainly from core inflation.
Shallots and tomatoes helped offset stronger price gains as they recorded deflation, while rice prices fell more sharply than in September, helping to temper headline inflation.
Read also: Transjakarta fare hike plan stirs debate
Looking ahead, volatile food inflation is expected to “remain elevated” because of rainfall-related production shocks, Bank Danamon economist Hosianna Situmorang said in a statement on Monday.
The Jakarta provincial administration’s plan to raise fares for the Transjakarta bus service could add around 0.1 percentage points to headline inflation if implemented, she added.
Moreover, “Falling oil prices are supporting energy disinflation, partly offsetting inflationary pressures. Together with easing gold prices from the October peak, this should keep inflation within BI’s [Bank Indonesia] target range [of between 1.5 and 3.5 percent],” she said.