Jakarta. Indonesia recorded a 1.65 percent month-to-month inflation in March amid price hikes in electricity bills and food commodities.

The government had halved electricity prices for households with a power capacity of between 450 and 2,200 volt-amperes in the first two months of 2025. Over 81 million households got their electricity bills -- be it prepaid or postpaid -- slashed during that period. Prices already returned to normal in March, significantly driving the monthly inflation, the Central Statistics Agency (BPS) data showed.

“The housing, electricity, and household fuel sub-group was the largest contributor to the March inflation. This sub-group recorded an 8.45 percent inflation,” BPS’ deputy M Habibullah told reporters on Tuesday. 

Electricity bills alone had represented 1.18 percent of the overall inflation in March. Food and tobacco products were also a major driver in inflation, contributing approximately 0.37 percent. Food commodities predominantly making up the inflation include shallots (0.11 percent), fresh fish (0.06 percent), and bird’s eye chilis (0.06 percent) -- all three are common ingredients in Indonesian cuisine. Staple food rice accounted for 0.02 percent of the March inflation. About 0.03 percent came from price increases in broiler chicken.

“Shallots and broiler chickens have been recording inflation during Ramadan and Eid over the past four years,” Habibullah said.

Shallots, however, did not undergo price hikes in March 2023. The same goes for broiler chickens in May 2022. For context, the fasting month of Ramadan began on March 1. Food prices usually soar during Ramadan due to increased demand as Muslims prepare evening meals to break their fast. Over 84 percent of Indonesians identify as Muslims, hence Ramadan’s huge impact on the economy.

Annual inflation reached 1.03 percent in March, BPS reported. Indonesia is still staying below the central bank’s target range of 1.5 percent to 3.5 percent.