Halister News

(Bloomberg) -- Rupiah falls for a third day ahead of May consumer price data release that will probably show the slowest gain since at least 2010.

• CPI probably rose 3.30% y/y, slowing from 3.60% advance in April, median est. in Bloomberg survey shows. That would be the lowest reading on record from data going back to 2010; see preview here
  • Though food prices rose ahead of Ramadan, base effects are likely to see headline inflation moderate to 3.28% y/y, Maybank economists write in note received May 31
  • Core inflation is expected to increase due to rising gold jewelery prices, car prices, and housing rent but remain relatively unchanged at 3.37% y/y vs Apr: 3.41% y/y
• Government will submit draft of revised 2016 budget to parliament’s plenary meeting, Kontan reports, citing FM Brodjonegoro
• Inflows from Indonesia’s planned tax amnesty will help boost economic growth to as much as 5.4% this year, BI’s Agung said in an interview published yesterday
  • Local govts will be allowed to directly intervene in markets to manage rising food prices, BI’s Agung says
  • Bank Indonesia yesterday said it’s “unconvinced” that rupiah will hit 14,000/USD level, as US economy is not too solid
• Global funds were net buyers of $27.8m in Indonesian equities yday: exchange data
• Rupiah falls 0.1% to 13,665 per dollar
• Yield on 8.375% govt bond due Sept. 2026 rose 16 bps last month to 7.879%