USD/IDR Price News: Indonesian rupiah hits multi-day highs near 14,000 on upbeat Core CPI

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.

USD/IDR reaction

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

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