REPUBLIKA.CO.ID, JAKARTA - Analyst alerted government to remain cautious as high price of food and fuel price contribute to the inflation of July 2013. Government is asked to intervene and ensure the sufficient supply and distribution of food to minimize negative impact.

"Annual inflation can be unstable and otherwise this condition will continue to push the price. However, government can endure it when inflation spreads to food. Government must have more supply into system and do not late to import food," an economist of Danareksa Research Institute, Purbaya Yudhi Sadewa said on Friday.

Head of Statistics Indonesia (BPS), Suryamin announced inflation on July reached 3.29 percent. Inflation rate from January to July reached 6.75 percent, while annual inflation rate from July 2012 to July 2013 was recorded 8.61 percent, the highest since January 2009.

"Rising of fuel prices followed by increase of transportation fares, including onion and chicken meat pricess are the main contributors to inflation in July," Suryamin said.

From money market sector, exchange rate falls down 10 points to 10,290 IDR per USD, from 10,280 IDR per USD. This data exceeds government's expectation. BPS is estimated inflation rate will be lower in Augusts 2013 compared to July 2013. Amount of inflation will be below one percent point.

Deputy of Statistic and Services in BPS, Sasmito Hadi Wibowo said after Eid al-Fitr, the price would be reduced as demand's reduce. Governor of Bank Indonesia, Agus Martowardojo is optimistic that monthly inflation will fall to 0.90 percent in August 2013 and will be back to normal in September 2013. 

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