Bank Indonesia (BI) reported monthly' retail sales improved in November supported by most categories of goods - Photo by BI Office

JAKARTA (TheInsiderStories) – Bank Indonesia (BI) reported monthly’ retail sales index (RSI) improved in November supported by most categories of goods. Its reflected in the November 2020 Real Sales Index which contracted 1.2 percent from October minus 5.3 percent.

The improvements occurred in clothing, materials motorized vehicle fuel, spare parts, and accessories. On an annual basis, retail sales performance for the November 2020 contracted with an index at minus 16.3 percent from same month of last year, or slightly deeper than minus 14.9 percent in the previous month, mainly influenced by the information and communication equipment also other households.

In December, monthly RSI are forecasted to improve. The real sales index for December 2020 is projected to contracted 2.9 percent on monthly basis, driven by increased public demand during the Christmas and New Year’ Day. All groups are predicted to experience positive growth, particularly in the information and communication Equipment and Other Household Supplies group.

Annually, RSI performance is predicted to continue in a contraction phase in December with a real sales index minus 20.7 percent year on year. In terms of prices, the inflationary pressure is predicted to increase in the next three months, while in the next six months its estimated to decrease.

This indication of price increase in February 2021 is reflected in the General Price Expectation Index for the next three months of 150.4, higher than the previous month’ 139.8. Its estimated that the price increase will be influenced by religious celebrations and distribution disruption due to unfavorable weather.

While, the expectation for the next six months amounted to 161.7, lower than the previous month’ 163.9, in line with the relatively well-maintained supply during Ramadan and Eid al-Fitr moments supported by smooth distribution.

Earlier, the central bank reported that consumer confidence index (CCI) rose to 96.5 in December from 92.0 in November of 2020. The confidence was observed to strengthen across all categories of expenditure levels and education levels. The consumer confidence improved in the 14 cities surveyed by BI.

It said, the improving was driven by strengthening perceptions of current economic conditions and future expectations. Perceptions of current economic conditions are improving, supported by aspects of job availability, income, and timeliness of purchasing durable goods. While, the consumer expectations of future economic conditions have increased, particularly in terms of job opportunities.

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