JAKARTA (TheInsiderStories) – The monthly retail sales performance have improved, reflected in the November 2020 Real Sales Index (IPR) which grew by -0.4 percent. The number higher than the growth in October 2020 of -5.3 percent (MoM).
This improvement was driven by sales of a number of goods groups, such as spare parts and accessories and the clothing sub-group, which grew positively in line with the increasing demand ahead of the Christmas and New Year’ holidays.
On an annual basis, retail sales performance is projected to contract -15.7 percent on an annual basis, slightly deeper than -14.9 percent in October 2020. The new forecasts mainly due to lower sales of the information and communication equipment group.
In terms of prices, inflationary pressure is predicted to ease in the next three months until January 2021 and in the next six months it will increase. The indication of a decline in prices in January 2021 is reflected in the general price expectation index for the next three months of 139.8, lower than the previous month of 142.5.
The decline in prices was supported by adequate supply of goods, smooth distribution and normalization of prices after the Christmas. While, for the next six months is 163.9, higher than the previous month’s 160.0 due to the increase in raw material prices accompanied by the entry of the month of Ramadan and ahead of Eid Al-Fitr.
Earlier, Bank Indonesia reported the Consumer Survey Index (CSI) improved to 92.0 compared to 79.0 in the previous month. The increased was observed to strengthen across all expenditure levels and age groups of respondents. Spatially, consumer confidence has improved in 17 cities.
The improvement in consumer confidence in November 2020 was driven by improving consumer expectations for future economic conditions, namely an increase in business activity expansion and an increase in income and job availability in the next 6 months. While, consumer perceptions of current economic conditions have also improved despite remaining in the area of contraction, mainly due to stronger perceptions of income and availability of labor.
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