"Our weekly survey showed that inflation until the third week of August exceeded 1 percent," Bank Indonesia Governor Agus D W Martowardojo said.Jakarta (ANTARA News) - Bank Indonesia predicted the country`s inflation would reach 1.3 percent in August.
"Our weekly survey showed that inflation until the third week of August exceeded 1 percent," Bank Indonesia Governor Agus D W Martowardojo said after a working meeting with Budget Division of the House of Representatives here on Monday.
Agus said food products were the largest contributors to the inflation in August
"The prices of a number of food commodities are still too high. We need to watch out against volatility of food prices especially the prices of beef, chicken meat and red onion," he said.
In addition soybean also contributed to the relatively high inflation in August, he said.
He said if inflation would exceed 1 percent in August, the inflation in the 2013 could reach 8.6-9.2 percent.
Rupiah fall would contribute to a rise in inflation if the month to month fall exceeded 4 percent, he said.
"Bank Indonesia, therefore, has continued efforts to maintain rupiah stability," he said, adding, but the central bank would set a certain target for rupiah value.
What is important is to keep the volatility of rupiah within a stable range, he said.(*)
Editor: Heru Purwanto
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