USD/IDR holds near 10-month high post-upbeat Indonesia's CPI

Indonesia’s annual inflation rate accelerated in February, according to the latest data published by Statistics Indonesia on Monday.

Indonesian February’s inflation rate rose to 2.98% on the year, compared with December’s 2.68% and 2.86% expectations but remained between the Bank Indonesia’s (BI) 2.5-4.5% target range.

Meanwhile, the monthly inflation reading for February came in at +0.28% vs. +0.18% expected and +0.39% last.

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).