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Central Bank predicts positive growth in retail sales

Jakarta Globe - June 13, 2023

Indah Handayani, Jakarta – Bank Indonesia said Tuesday that retail sales grew in May as reflected in the Real Sales Index (RSI) which stood at 234.2, up slightly by 0.02 percent year-on-year.

Bank Indonesia spokesman Erwin Haryono said the positive performance of retail sales was driven by the food, beverage, and tobacco group, as well as the apparel subgroup, which is expected to maintain positive growth.

"On a monthly basis, retail sales are forecasted to contract by 3.6 percent," Erwin said.

The decline in sales performance occurred in all groups, particularly in the apparel subgroup, food, beverage, and tobacco group, and the information and communication equipment in line with the "normalization" of consumer spending after the Ramadan holidays.

In April 2023, the RSI recorded a value of 242.9, indicating a year-on-year growth of 1.5 percent. Positive growth in retail sales was observed in several groups, particularly in the culture and recreation group and the apparel subgroup. On a monthly basis, retail sales grew by 12.8 percent.

Regarding prices, respondents anticipate a decrease in inflationary pressures in July. The General Price Expectations Index (GPEI) for July is 118.5, lower than the previous month's 124.5.

"The maintained price pressure is supported by the availability of supplies and smooth distribution of goods," Erwin said.

Source: https://jakartaglobe.id/business/central-bank-predicts-positive-growth-in-retail-sale