Central Statistics Agency (BPS) of Denpasar City reported a 0.19 percent deflation in August 2025.
This decrease was driven by a drop in the prices of several key commodities, namely bird’s eye chili, tomatoes, air transportation, mustard greens, and green beans.
One notable factor behind the deflation is the decrease in airfare, which occurred surprisingly during the high season or holiday period, when international tourists typically flock to Bali.
Head of the Price Statistics Team at BPS Denpasar, Luh Putu Novita Sari, explained that this trend followed the end of the school holidays.
According to Radarbali, “In July, airfare rates were quite high. Meanwhile, in August, we saw a decline compared to the previous month,” said Novita when contacted on Monday (September 8, 2025).
She added that airline promotions commemorating Indonesia’s Independence Day also contributed to the price reduction.
According to Bisnisbali, “Based on the fare data, we found several special discounts in celebration of Independence Day that influenced ticket prices,” she noted.
Data from I Gusti Ngurah Rai International Airport showed that the number of passengers declined from around 2.4 million in July to 2.3 million in August, contributing to the overall drop in airfare.
In addition to the five main commodities, several other goods also contributed to the deflation in August 2025.
These included fuel, pork, preserved mackerel, long beans, cucumbers, oranges, wet tissues, children’s Muslim clothing, anchovies, cooking oil, watermelon, water spinach, men’s undershirts, chayote, and mangoes.
Despite the monthly deflation, Denpasar still recorded a year-on-year inflation rate of 3.05 percent.
Commodities contributing most to this annual inflation included rice, gold jewelry, instant coffee, cooking oil, machine-made white cigarettes, preserved mackerel, tomatoes, papayas, tutoring fees, house rental contracts, domestic helper wages, toothpaste, waste disposal fees, bottled water, bath soap, and rice with side dishes.
Meanwhile, several commodities helped lower the annual inflation rate. These included fuel, broiler chicken meat, mobile phones, pork, women’s handbags, garlic, children’s shoes, mangoes, and scallions.
BPS emphasized that the price fluctuations in these commodities, particularly airfare, reflect changes in consumer behavior after the holiday period and are also influenced by promotional programs launched by businesses.
Sources: Bisnisbali, Radarbali, Balipost
Feat Image: via DenpasarAvenue