Indonesia calls October inflation manageable as aid plans advance
Annual inflation reached 3.23 per cent, while the government is preparing around Rp30 trillion in social assistance and discounts for the year-end holidays.
Indonesia's annual inflation rate of 3.23 per cent for October 2026 remains manageable, Coordinating Minister for Economic Affairs Airlangga Hartarto said after meeting President Prabowo Subianto. He said the government saw no cause for concern because the figure was inside its target band.
The target is centred on 2.5 per cent, allowing a deviation of 1 percentage point in either direction. Hartarto also said commodity price increases should be assessed alongside their impact on farmers' earnings.
Hartarto said measures to support purchasing power and stable prices included rice aid providing each family with 30 kilograms. Preparations are also under way for social assistance worth around Rp30 trillion and special discounts ahead of the Christmas 2026 and New Year 2027 holidays.
The minister said the stimulus also aimed to sustain domestic consumption, which he identified as an important driver of economic growth through the close of 2026.
A government report showed prices rose 0.22 per cent month on month in October, taking year-to-date inflation to 2.4 per cent. The main pressures included volatile food items such as fresh fish and cayenne pepper, together with transport, especially air travel.
The report put inflation in the volatile-price category at 5.81 per cent. Core inflation measured 2.56 per cent, while the rate for prices administered by the government was 3.24 per cent.
