Govt Expects Inflation to Remain Within Range of 6-7% in October
The federal government projects that inflation will stay within the range of 6–7 percent in October, with a further decline anticipated to 5.5–6.5 percent by November 2024.
In its Monthly Economic Update & Outlook for September, the finance division noted that year-on-year (YoY) Consumer Price Index (CPI) inflation for September 2024 was recorded at 6.9 percent, marking the lowest level in 44 months. This is a significant decrease compared to 9.6 percent in the previous month and 31.4 percent in September 2023.
The report also highlighted that the Large Scale Manufacturing (LSM) sector continues to present mixed signals. While YoY growth remains negative, month-on-month growth shows signs of recovery. Industrial output is gradually stabilizing, and key sectors are beginning to increase production. Although challenges still exist in the domestic market, the outlook remains cautiously optimistic.
The positive monthly growth indicates that momentum could build in the coming months, supported by a favorable economic environment both domestically and externally. Economic recovery is expected to benefit from declining inflation and continued fiscal consolidation in the months ahead.
