The Central Statistics Agency (BPS) recorded that inflation rate for September 2016 currently sits at 0.22 percent with the consumer price index currently recorded at 125,41. Certain items in the category of processed foods, beverages, and tobacco experienced a 0.34 percent increase in the consumer price index.

Meanwhile, products and services in the housing, water, electricity, gas, and fuel category also experienced an increase of 0.29 percent. In addition, products in the clothing category experienced a 0.13 percent price increase.

Based on BPS records, the annual inflation rates for January 2016 to September 2016 period currently stood at 1.97 percent. The figure is considerably lower compared to the 3.07 percent inflation rate recorded on the same period last year.

According Reza Priambada, Head Researcher of NH Korindo Securities, the data receives positive response from market players, causing Rupiah to strengthen on Monday’s trading session.

“Data on September inflation rate, allows Rupiah to strengthen, testing its new psychological threshold,” Reza said on Tuesday, October 4, 2016.

Reza added that Rupiah is likely to continue to strengthen with a 12,942 resistance level and a 13,020 support level.

source: tempo.co