USD/IDR Price News: Indonesian rupiah stays below 14,300 on upbeat CPIs

Dhwani Mehta FXStreet

Indonesia’s annual inflation rate accelerated in May, according to the latest data published by Statistics Indonesia showed on Wednesday.

Indonesian May’s inflation rate rose to 1.68% on the year when compared with April’s 1.42% and 1.67% expectations, although remains way below the Bank Indonesia’s (BI) 2.5-4.5% target range.

The annualized core figure arrived at 1.37% vs. 1.18% previous and 1.28% expected.

Meanwhile, the monthly inflation reading for May came in at 0.32% vs. +0.32% expected and +0.13% last.

USD/IDR reaction

The USD/IDR cross remains uninspired by the upbeat CPI release. At the press time, the spot trades flat at 14,272, keeping its recovery mode intact from 14,252.50 lows.

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).

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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