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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
INDONESIA
Indonesia’s April CPI printed close to expectations at 3.0% y/y for headline and 1.8% y/y for core, unchanged from March. Both measures are within Bank Indonesia’s 1.5-3.5% target band but look they may have troughed. State administered prices were a moderate 1.5% y/y while volatile food prices remained elevated at 9.6% y/y.
- Bank Indonesia (BI) hiked rates 25bp to 6.25% in April to stabilise the rupiah but also to ensure that imported inflation doesn’t become a problem (February import prices fell 1.7% y/y). Respondents in the April S&P Global PMI noted that the weak currency was increasing their costs.
- USDIDR rose after BI’s hike though to a peak of 16283. It has fallen 0.3% today to 16205 on the back of a weaker USD following Fed Chair Powell saying a rate hike is unlikely.
- Annual inflation is being driven by food prices such as rice and meat. The monthly increase was due to transport, gold jewellery and some food items. Rice prices fell on the month in April.
Indonesia CPI y/y%
Source: MNI
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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