Indonesia’s annual inflation rate decelerated in September, according to the latest data published by Statistics Indonesia on Tuesday.
Indonesian September’s annual inflation rate rose to 3.39% on the year, compared with August’s 3.49% and 3.52% expectations but remained between the Bank Indonesia’s (BI) 2.5-4.5% target range. The annualized core figure arrived at 3.32% vs. 3.30% previous and 3.29% expected.
Meanwhile, the monthly inflation reading for September came in at -0.27% vs. -0.15% expected and 0.12% last.
The USD/IDR cross extended the upside and hit fresh four-week tops at 14,200, up 0.10% on the day. The Indonesian Rupiah was hurt by a miss on the headline annual Indonesian CPI reading for the month of September.
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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