Indonesia’s October inflation at 3.23 per cent, within target range
Manufacturing PMI rose to 54 from 52 in September, which Finance Minister Suahasil Nazara said reflected expectations of stronger demand.
Indonesia’s inflation rate stood at 3.23 per cent in October, within the government’s target band, Finance Minister Suahasil Nazara said after briefing President Prabowo Subianto on economic stability at Jakarta’s State Palace.
The government targets inflation of 2.5 per cent, with a permitted range between 1.5 per cent and 3.5 per cent. Suahasil said the latest reading was consistent with the assumptions used to prepare the budget and that price pressures remained under control.
He also reported an increase in the manufacturing Purchasing Managers’ Index (PMI), which reached 54 in October compared with 52 in September. He presented the rise as a sign that businesses were preparing for stronger demand.
Suahasil said a reading above 50 indicated that manufacturers were building raw material stocks in anticipation of higher demand. Businesses were purchasing more production inputs to prepare for an expected increase in output, he added.
