Consumer Price Index ( CPI ) is the count or the average change in retail prices of a basket of goods and services. Index CPI and PPI inflation rate is used. While the rate of inflation calculated based on the interest rate. Use the inflation rate as an indicator of economic fundamentals is to reflect the level of GDP and GNP to the actual values. Value of real GDP and GNP is a very important indicator for an investor to compare the opportunities and risks of investment in foreign countries. One way the government in tackling inflation is by raising policy interest rates. While the gross national product ( GNP ) is the total production of goods and services produced by a country's population residing either / domiciled in the country and outside the country in a given period. Gross domestic product ( GDP ) is the sum of all goods and services produced by a country both by domestic companies and by foreign companies operating in the country at a time / period.
Producer Price Index ( PPI ) is an index that measures the average change in prices received by domestic producers for each output produced in each level of the production process. PPI data collected from various sectors of the economy especially in the manufacturing, mining and agriculture.
Balance of payments is a balance sheet that consists of all activities of international economic transactions of a country, both commercially and financially, with other countries in a given period. Balance of payments reflects all transactions between residents, government, and employers of domestic and foreign parties, such as export and import transactions, investment portfolio, transactions between the Central Bank, and others. With the balance of payments is we know when a country had a surplus or deficit. Broadly speaking, the Balance of Payment is divided into two parts, namely :
Balance of trade is the difference between total exports and imports of goods, services and transfers. In the calculations, the trade balance does not include the transactions of financial assets and liabilities ( debts ). This data is an indicator of the trend of foreign trade is a net flow of total exports and imports of goods and services as receipts or income. With the export transaction will be accepted a sum of money which will increase the demand for the currencies of exporters. Vice versa on import of goods and services where the amount of money must be spent to pay for the goods and services we import, it will increase the country's currency will offer importers.
Capital flow is direct investment and indirect investment, which in direct investment, foreign investors make an investment in real assets such recently built factories, office buildings dll.Investasi is usually long term. While indirect investment can we meet in the financial instrument investment. For example, an investor buying shares or bonds in the Indonesian market. The investor then must exchange their currency into dollars in order to buy stocks or bonds in Indonesia.
