JAKARTA (TheInsiderStories) – Bank Indonesia (BI) reported the Retail Sales Index (RSI) lowering to 1.1 percent in August, after a 2.4 percent increase in the previous month, the central bank survey showed on Wednesday (10/09).
The retail sales performance was supported by high-growth of group parts and accessories, as well as other household commodity groups such as electronic goods other than audio/video and household furniture.
The survey also predicted retail sales would rise 2.1 percent on an annual basis in September. This is mainly driven by the increased sales of the other household equipment and food, beverage and tobacco groups, and sales of the parts and accessories group.
The survey results also indicate that pressure on upward prices at retail traders in the next six months or in February 2020 is expected to decline. This is reflected in the upcoming 6-month price expectation index of 168.2, lower than the previous month’s price expectation index of 174.7.
The retail sales index is one of inflation’s contribution. Meanwhile, Indonesia’s inflation indicated by the Consumer Price Index (CPI) increased 3.39 percent year-on-year (yoy) in September compares to an inflation rate of 3.49 percent in the previous month.
September’s figure means inflation is comfortably within the central bank’s estimated range at 2.5 to 4.5 percent. Head of Statistic Indonesia Suhariyanto said, lower prices of eggs, unions, chili, and chicken, helped the monthly CPI index to decline by 0.27 percent.
Furthermore, annual core inflation, which exempts government-controlled goods and volatile food prices, inched up to 3.32 percent in September from 3.30 percent in August.
The government and central bank was ensured that the 2019′ inflation rate remains within the targets. Coordinating minister for economic affairs Darmin Nasution said both parties have inventoried several challenges in order to achieve the 2019′ inflation target, including the potential for long droughts and the challenge of maintaining inter-time and inter-regional staple food availability.
The solution, added by the minister, the government is committed to maintaining the volatile foods contribution to inflation rate at a maximum of 5 percent. In the long term, he continued, creating ecosystems that support the realization of staple and inter-regional staple food availability.
Then, maintain price affordability, supply availability, smooth distribution, and effective communication. In the National Inflation Control Roadmap 2019-2021, the policy is pursued by giving priority to the availability of supply and smooth distribution, which is supported by a more conducive ecosystem and the availability of accurate data.
Second, strengthening the implementation of the National Inflation Control Roadmap 2019-2021 and also implementing the Roadmap for Inflation Control at the Provincial level. And third, strengthening the coordination of the central and regional governments in controlling inflation through the holding of the National Inflation Control Coordination Meeting.
Going forward, Nasution revealed, the government at the central and regional levels also the central bank will continue to strengthen policy coordination to bring inflation in a downward trend in the range of 3±1 percent in 2020 and 2021, so it can support strong, sustainable, balanced and inclusive economic growth.
Written by Staff Editor, Email: email@example.com