Indonesia’s annual inflation rate decelerated in January, according to the latest data published by Statistics Indonesia on Monday.
Indonesian January’s inflation rate dropped to 1.55% on the year, compared with December’s 1.68% and 1.66% expectations, remaining way below the Bank Indonesia’s (BI) 2.5-4.5% target range. The annualized core figure arrived at 1.56% vs. 1.60% previous and 1.53% expected.
Meanwhile, the monthly inflation reading for October came in at +0.26% vs. +0.36% expected and +0.45% last.
The USD/IDR cross consolidates the downside after the CPI release. At the press time, the spot trades 0.09% higher at 14,030, having hit a five-day low at $14,020 on the data.
About Indonesia’s CPI
The Inflation index released by the Statistics Indonesia is a measure of price movements by the comparison between the retail prices of a representative shopping basket of goods and services. The purchase power of the Indonesian Rupiah is dragged down by inflation. The CPI is used as a key indicator to measure inflation and changes in purchasing trends. Generally speaking, a high reading is seen as positive (or bullish) for the Rupiah, while a low reading is seen as negative (or Bearish).
Credit: FX Street