Indonesia’s annual inflation rate decelerated in October, according to the latest data published by Statistics Indonesia on Friday.
Indonesian October’s annual inflation rate dropped to 3.13% on the year, compared with September’s 3.39% and 3.52% expectations but remained between the Bank Indonesia’s (BI) 2.5-4.5% target range. The annualized core figure arrived at 3.20% vs. 3.32% previous and 3.29% expected.
Meanwhile, the monthly inflation reading for October came in at +0.02% vs. -0.15% expected and 0.12% last.
The USD/IDR cross kept its range near five-day tops of 14,072 on the data release, up 0.24% on the day. The Indonesian Rupiah was left unimpressed by the mixed October Indonesian inflation figures.
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).
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