JAKARTA (TheInsiderStories) – Bank Indonesia reported the Retail Sales Survey dropped to a deeper contraction in April by 16.9 percent compared to last year. In addition, the Real Sales Index (RSI) also contracted to 4.5 percent (yoy) in March 2020.
This was the fifth straight month of decline in retail trade, and the steepest fall since November 2008, amid restriction measures that led consumers to stay at home. The central bank said in an official statement released today (05/16), the retail sales declined caused of contractions in all commodity groups.
Survey respondents attributed the deepest sales decline affecting clothing, cultural and recreational Goods. They also predicted further contraction in retail sales, with the RSI in May 2020 sinking to -22.9 percent and affecting all commodities surveyed.
Respondents expected the deepest sales decline to affect clothing, deteriorating to -77.8 percent from -70.9 percent in April 2020. There were also seen lower purchases of clothing (-70.9 percent vs -60.5 percent in March), information & communication equipment (-17.5 percent vs -7.6 percent), and cultural & recreational goods (-48.5 percent vs -20.5 percent).
Then, fuel (-39.0 percent vs -18.7 percent), and food, beverages & tobacco (- 7.7 percent vs 3.7 percent). On a monthly basis, retail sales plunged 13.3 percent in April, after a 1.6 percent gain in March
The latest survey indicated that inflationary pressures in the next three months are likely to increase, as reflected by an increase in the three-months Price Expectation Index to 162.6 (July 2020) from 160.7 a month earlier, in line with increasing demand during the celebration of Eid al-Adha.
The survey also pointed milder inflationary pressures in the next six months, as confirmed by a decrease in the 6-months Price Expectation Index to 146.4 (October 2020) from 153.0 in the previous month.
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