Fashion pulse: Indonesia - August 2026

Consumer prices (August)

Clothing and footwear prices in Indonesia rose 1.20 percent year-on-year in August 2026, according to Statistics Indonesia (BPS), up from 1.04 percent in July. Headline consumer price inflation rose to 3.19 percent from 2.88 percent, within Bank Indonesia's (BI) target range of 2.5 percent plus or minus one percentage point, so clothing and footwear inflation ran 1.99 percentage points below the headline rate. On the month, overall consumer prices rose 0.21 percent.

Core inflation rose to 2.92 percent YoY in August from 2.76 percent in July, according to BPS data cited by BI. On the month, BI said core inflation was mainly driven by gold jewellery.

Retail sales (August, preliminary)

BI's real sales index for clothing fell 12.4 percent YoY in August, after a 2.8 percent rise in July, according to preliminary results of BI's Retail Sales Survey. In August 2025 the clothing index had risen 8.3 percent, which raised the comparison base. On the month, the clothing index fell 6.7 percent.

Total real retail sales rose 1.3 percent YoY in August, up from 1.1 percent in July, and were 0.8 percent higher than in July, according to BI. The bank attributed the annual growth mainly to food, beverages and tobacco and to spare parts and accessories.

Consumer sentiment (August)

BI's Consumer Confidence Index rose to 118.5 in August from 116.8 in July, above the 100 threshold that separates optimism from pessimism. The current economic condition index rose to 109.4 from 107.9, and the consumer expectation index to 127.6 from 125.7.

Monetary policy and currency (August)

BI left the BI-Rate unchanged at 5.75 percent at its 18–19 August meeting, keeping the deposit facility rate at 4.75 percent and the lending facility rate at 6.50 percent. The dollar averaged 17,805 rupiah in August, down from 18,011 rupiah in July, according to BI data compiled by the Bank for International Settlements (BIS), a 1.2 percent rise in the value of the rupiah. Compared with August 2025, when the dollar averaged 16,308 rupiah, the rupiah was 8.4 percent weaker.

The bottom line

Indonesian clothing and footwear prices rose 1.20 percent YoY in August, 1.99 percentage points below headline inflation of 3.19 percent. BI's real sales index for clothing fell 12.4 percent YoY against a high August 2025 base, while total real retail sales rose 1.3 percent. Consumer confidence improved to 118.5, and BI kept the BI-Rate at 5.75 percent.

Note: this article combines the most recent official data available at the time of writing. Reporting lags differ by indicator and country, so not all figures refer to the same month. Each data point is labelled with its reference period.