Indonesia’s annual inflation rate accelerated further in August, according to the latest data published by Statistics Indonesia on Monday.
Indonesian August’s annual inflation rate rose to 3.49% on the year, compared with July’s 3.32% and 3.54% expectations but remained between the Bank Indonesia’s (BI) 2.5-4.5% target range. The annualized core figure arrived at 3.30% vs. 3.18% previous and 3.17% expected.
Meanwhile, the monthly inflation reading for August came in at 0.12% vs. 0.16% expected and 0.31% last.
The USD/IDR cross keeps its range near three-week lows of 14,185, up 0.10% on the day. The Indonesian Rupiah remains little affected by mixed Indonesian CPI figures for the month of August.
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).
Share
