Indonesia's July core inflation rate was below the central bank's prediction, Bank Indonesia governor said on Monday, underlining that its interest rate policy will be determined by the core inflation rate and economic growth.

July's core inflation was 2.86%, below the 2.99% that BI had expected, Governor Perry Warjiyo said, adding that the headline rate of 4.94% was slightly above expectation driven by higher food prices. He said food supply for September until the end of the year is expected to rise and food inflation will ease. (Reporting by Stefanno Sulaiman; Editing by Gayatri Suroyo)