October 2024 marked a decline in headline inflation to 1,71% (yoy) from 1,84% (yoy) in the previous month. Headline inflation in October 2024 reached its lowest point since November 2021 and was relatively within Bank Indonesia's inflation target of 1,5% to 3,5%. The decline in inflation was driven by the government-regulated price group and the volatile price group. Core inflation increased slightly to 2,21% (yoy), driven by rising global commodity prices. The rupiah weakened to IDR15.770 per USD in mid-November along with capital outflows triggered by geopolitical tensions and rising uncertainty related to the US Election. A positive aspect was recorded by the position of foreign exchange reserves which increased to USD151,2 billion, influenced by tax and service revenues and the withdrawal of government foreign loans. With relatively controlled inflation conditions and the rupiah's depreciation trend in recent times, Bank Indonesia needs to maintain its benchmark interest rate at 6,00% this November.
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