Indonesia’s annual inflation eased to 3.48% in March 2026 from 4.76% in the previous month, marking the lowest level since December and falling short of market expectations of 3.60%. The latest reading remained within the central bank's 1-1/2%–3-1/2% target range, as price growth slowed for food (3.34% vs 3.51% in February), clothing (0.65% vs 0.73%), housing (7.24% vs 16.19%), and health (1.49% vs 1.61%). Meantime, communication costs were almost flat (-0.03% vs -0.09%). In contrast, inflation accelerated for furnishings (0.24% vs 0.21%), transport (0.61% vs 0.12%), recreation (1.08% vs 0.96%), education (1.14% vs 1.11%), and restaurants (1.42% vs 1.37%). Core inflation, which strips out volatile food and administered prices, dropped to 2.52%, below February's figure and forecasts of 2.63%. On a monthly basis, consumer prices rose 0.41%, moderating from a 0.68% increase in February, though still indicating a second consecutive month of gains.