USD/IDR hits six-week highs as Indonesia's CPI misses estimates with 3.00%

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

Indonesian November’s annual inflation rate dropped to 3.00% on the year, compared with October’s 3.13% and 3.06% expectations but remained between the Bank Indonesia’s (BI) 2.5-4.5% target range. The annualized core figure arrived at 3.08% vs. 3.20% previous and 3.14% expected.

Meanwhile, the monthly inflation reading for November came in at +0.14% vs. +0.2% expected and +0.02% last.

The USD/IDR cross hit fresh six-week highs at 14,125 on the data release

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).