REPUBLIKA.CO.ID, JAKARTA -- Bank Indonesia (BI) explained that the subsidized fuel restriction influenced August inflation, but still lower than the same period last year.

Statistic Indonesia (BPS) recorded August inflation at 0.47 percent month to month compared to 3.99 percent mtm in August 2013, while the annual inflation at 3.42 percent year to date.

BI deputy governor, Perry Warjiyo said that inflation increased in third and fourth week of August.

"It is also triggered by subsidized fuel restriction. The high impact was recorded at third week," Warjiyo said recently.

BI previously projected a deflation in August, but it did not happen. The fish price also contributed to the quite high inflation.

According to Warjiyo, inflation rate of 0.47 percent is still lower than the historical average because BI is optimistic that the total inflation by the end of the year will only at 5.3 percent. September inflation will be lower or 4.5 percent year on year.

"Though we are happy with the low inflation, but we also see the possibility risks that could rise in future," he said.

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