Indonesia’s annual inflation rate accelerated more-than-expected in November, according to the latest data published by Statistics Indonesia on Tuesday.
Indonesian November’s inflation rate rose to 1.59% on the year, compared with October’s 1.44% and 1.53% expectations but remained way below the Bank Indonesia’s (BI) 2.5-4.5% target range.
Meanwhile, the monthly inflation reading for November came in at +0.28% vs. +0.21% expected and +0.07% last.
USD/IDR reaction
The USD/IDR cross fades a spike to four-day highs of 14,165 on upbeat Indonesian CPI data.
At the press time, the spot trades 0.27% higher at 14,127, as the Indonesian rupiah benefits from rising price pressures.
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).
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