REPUBLIKA.CO.ID, JAKARTA - Governor of Bank Indonesia (BI) Agus Martowardojo said yearly inflation inclined to 8.18 percent despite the earlier prediction was at 7.2 percent. Based on survey of BI in fourth week of July, inflation reached 2.87 percent or slightly increased from 2.77 percent in the last week.

"However, this inflation still shows pretty good after we have once reached 17 percent," Martowardojo said on Thursday.

Martoworadojo predicted that monthly inflation would decrease by 0.9 percent in August and would be back to normal in September. But the inflation tends to increase towards end of the year.

Food inflation from rice and meat contribute 1.5 percent to current monthly inflation which is recorded at 2.87 percent. Other contributor is administer price, such as transportation fares increase 1.2 percent, while core inflation is recorded at 0.1 percent. BI is optimistic that inflation in 2014 will return to normal level between 3.5 to 5.5 percent or approximately at 4.3 percent. 

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