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Indonesia’s annual inflation rate softened slightly in June, according to the latest data published by Statistics Indonesia on Wednesday.

Indonesian June’s inflation rate dropped to 1.96% on the year, compared with May’s 2.19% and 1.84% expectations but remained between the Bank Indonesia’s (BI) 2.5-4.5% target range. The annualized core figure arrived at % vs. 2.65% previous and 2.46% expected.

Meanwhile, the monthly inflation reading for June came in at +0.18% vs. +0.02% expected and +0.07% last.

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).