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Indonesia’s Retail Sales Index Lowering to 1.8 Percent in June

Indonesian retail sales grew by 1.1 percent in August - Photo: Special

JAKARTA (TheInsiderStories) – Bank Indonesia (BI) reported Retail Sales Index (RSI) until June 2019, lowered to 1.8 percent after peak season in Ramadhan and Ied-Fitr, it showed at the latest report released on Thursday (08/08). Last year the RSI stood at 2.3 percent.

The significant contribution come from fuel, art, and souvenir. The central bank optimistic the retail sales will be positive again in July, supported by academic year. Its indicating by real sales data on July grow around 2.3 percent.

The rising of retail sales contributed by parts and household equipment, foods and beverage, also tobacco and clothing. Its also indicated the pressure in retail seller price in the next three months will be slower, showed by general price expectation index at 131.4 from previous month 138.3.

Last July, the Consumer Confidence Index (CCI) also fell to 124.7 in July compared to June 126.4. The central bank rated that consumer optimism is supported by improving expectations of future economic conditions.

The respondents predicted rising incomes in the next six months, which raised expectations concerning future economic conditions as indicated by a stronger Consumer Expectation Index (CEI). The CEI was observed to decline on the previous period, weighed down by weaker consumer confidence regarding current job availability.

The survey also showed how consumers expected an accumulation of inflationary pressures until January 2020 in line with the cyclical spike in demand for goods and services during beginning of year period. This was confirmed by an uptick in the six-month Price Expectations Index (PEI) to 174.9 from 170.3 in the previous period.

Written by Staff Editor, Email: theinsiderstories@gmail.com