USD/IDR keeps the corrective upside intact post-downbeat Indonesia's CPI

Indonesia’s annual inflation rate decelerated further in December, according to the latest data published by Statistics Indonesia on Thursday.

Indonesian December’s inflation rate dropped further to 2.72% on the year, compared with November’s 3.00% and 2.90% expectations but remained between the Bank Indonesia’s (BI) 2.5-4.5% target range. The annualized core figure arrived at 3.02% vs. 3.08% previous and 3.11% expected.

Meanwhile, the monthly inflation reading for December came in at +0.34% vs. +0.49% expected and +0.14% last.

The USD/IDR cross kicked-off 2020 on a positive note, having ended 2019 at its weakest since June 2018. The Indonesian Rupiah eased-off multi-month tops vs. its American rival this Thursday, maintaining its corrective mode on downbeat Indonesian inflation figures.

At the time of writing, USD/IDR trade around 13,900 levels, up +0.14% so far.

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).