Govt Expects Inflation to Remain Within Range of 6-7% in October

The federal government expects that inflation will remain within range of 6–7 percent in October and further down to 5.5–6.5 percent by November 2024.  In its Monthly Economic Update & Outlook for September, the finance division highlighted that year-on-year (YoY) CPI Inflation in September 2024 was recorded at 6.9 percent, the lowest level in 44 months, compared to 9.6 percent in the previous month and 31.4 percent in September 2023.  The report said that LSM continues to show mixed signals, with YoY growth remaining negative, yet MoM growth indicating signs of recovery. Industrial output is gradually stabilizing, and key sectors are beginning to ramp up production. Although challenges persist, particularly in the domestic market, the outlook remains cautiously optimistic.   The positive monthly growth suggests momentum could gather in the coming months, supported by a favorable economic environment at both domestic and external fronts. Economic recovery will take advantage of declining inflation and continuation of fiscal consolidation in coming months, it added.