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Indonesia’s annual inflation rate accelerated in May, according to the latest data published by  Statistics Indonesia  showed  on Wednesday.

Indonesian May’s inflation rate rose to 1.68% on the year when compared with April’s 1.42% and 1.67% expectations, although remaining way below the Bank Indonesia’s (BI) 2.5-4.5% target range.

Meanwhile, the monthly inflation reading for May came in at 0.32% vs. +0.32% expected and +0.13% last.

more to come ….

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).