USD/IDR Price News: Rupiah keeps lows near 14,275 on above-forecast Indonesian inflation

Indonesia’s annual inflation rate kept moving north in December, according to the latest data published by Statistics Indonesia showed Monday.

Indonesian December’s inflation rate rose to 1.87% on the year when compared with November’s 1.75%, although remained way below the Bank Indonesia’s (BI) 2.5-4.5% target range.

The annualized core figure arrived at 1.56% vs. 1.44% previous and 1.51% expected.

USD/IDR reaction 

At the time of writing, the spot adds 0.15% on the day to trade at 14,271. The pair showed little reaction to the inflation data, holding near-daily highs of 14,276.50.

About Indonesia’s CPI

The Inflation index released by 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).