USD/IDR Price News: Indonesian rupiah tests highs near 14,450 on upbeat CPIs

Indonesia’s annual inflation rate extended its uptrend in July, according to the latest data published by Statistics Indonesia showed Monday.

Indonesian July’s inflation rate rose to 1.52% on the year when compared with June’s 1.33% and 1.45% expectations, although remains way below the Bank Indonesia’s (BI) 2.5-4.5% target range.

The annualized core figure arrived at 1.40% vs. 1.49% previous and 1.38% expected.

Meanwhile, the monthly inflation reading for July came in at 0.08% vs. +0.01% expected and -0.16% last.

USD/IDR reaction 

At the press time, the spot trades flat at 14,457.5, testing daily lows of 14,454.50, as the Indonesian rupiah draws support from the upbeat data.

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).