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.
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.
