Antara News·Indonesia·Monday, November 2, 2026 at 01:41 PM UTC

Govt sees 3.23 percent October inflation as no cause for concern

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Maria Cicilia G P, Resinta Sulistiyandari

Coordinating Minister for Economic Affairs Airlangga Hartarto said the government remains unconcerned about October 2026 inflation, which reached 3.23 percent year-on-year, nearing the upper end of the national target.

According to Hartarto, inflation remained within the government's target range of 2.5 percent, plus or minus 1 percentage point, keeping overall inflation under control.

"Inflation is still at 2.5 plus or minus 1 percent, the government is not worried," he conveyed after attending a limited meeting with President Prabowo Subianto on Monday.

The minister noted that rising commodity prices should also be considered in terms of their impact on farmers' incomes. Accordingly, the government considers the inflation increase to remain within manageable limits.

"The increase is also related to farmers' income, so we let inflation remain in the range of 2.5 plus minus 1," he continued.

To maintain price stability as well as people's purchasing power, Hartarto said the government relies on several programs, including the distribution of 30 kilograms of rice aid per family.

The government is also preparing a social assistance program with a value of around Rp30 trillion (US$1.65 billion) as well as special discounts ahead of Christmas 2026 and New Year 2027.

Hartarto added the stimulus was also intended to sustain domestic consumption, a key driver of economic growth through the end of this year.

Based on government report, inflation in October 2026 was recorded at 3.23 percent annually and 0.22 percent monthly (month-to-month). Meanwhile, inflation for the calendar year (year-to-date) reached 2.4 percent.

Inflation pressure mainly comes from the volatile food price group, including cayenne pepper and fresh fish commodities, as well as the transportation group, especially air transportation.

In detail, core inflation was recorded at 2.56 percent, government-administered price inflation was 3.24 percent, while volatile price inflation reached 5.81 percent.

Therefore, the government hopes these various intervention programs can maintain price stability and people's purchasing power until the end of 2026.

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