USD/IDR sits at 13-day tops above 13,700 after Indonesia's annualized CPI disappoints with 2.68%
|Indonesia’s annual inflation rate decelerated further in January, according to the latest data published by Statistics Indonesia on Monday.
Indonesian January’s annual inflation rate dropped to 2.68% on the year, compared with December’s 2.72% and 2.86% expectations but remained between the Bank Indonesia’s (BI) 2.5-4.5% target range. The annualized core figure arrived at 2.88% vs. 3.02% previous and 3.00% expected.
Meanwhile, the monthly inflation reading for January came in at 0.39% vs. 0.46% expected and 0.34% last.
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 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).
FX Implications
The USD/IDR cross keeps its range near a thirteen-day high of 13,730 on the data release, up 0.59% on the day. The Indonesian Rupiah remains pressured by the downbeat Indonesian inflation figures.
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