USD/IDR Price News: Indonesian rupiah hangs around four-month lows of 14,305 on mixed CPIs

Indonesia’s annual inflation rate eased in February, to the latest data published by Statistics Indonesia showed on Monday.

Indonesian February’s inflation rate dropped to 1.38% on the year, compared with January’s 1.55% and 1.38% expectations, remaining way below the Bank Indonesia’s (BI) 2.5-4.5% target range. The annualized core figure arrived at 1.50% vs. 1.56% previous and 1.52% expected.

Meanwhile, the monthly inflation reading for February came in at +0.10% vs. +0.09% expected and +0.26% last.

USD/IDR reaction 

more to come ....

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).