BI Survey: Retail Sales Performance Grows Positively In May 2023

Illustration (Photo: Doc. Ministry of Finance)

JAKARTA Bank Indonesia (BI) reports that the annual retail sales performance is expected to grow positively in May 2023.

Head of the BI Communications Department Erwin Haryono said this was reflected in the May 2023 Real Sales Index (IPR) of 234.2, or a positive growth of 0.02 percent year on year (yoy).

"The retail sales performance was driven by food, beverage, and tobacco groups as well as clothing subgroups which are expected to continue to grow positively," he said in a press release today, Tuesday, June 13.

According to Erwin, monthly retail sales are estimated to be in a contraction phase of 3.6 percent on a monthly basis (month to month/mtm).

"The decline in sales performance occurred in all groups, especially in the Subgroup of Sandang, Food, Drink, And Tobacco Groups, as well as information and Communication equipment in line with the normalization of public consumption after the Ramadan and Eid al-Fitr periods," he said.

Erwin added, in April 2023, IPR was recorded at 242.9 or on an annual basis growing by 1.5 percent yoy.

"The performance of retail sales that grew positively occurred in several groups, especially in cultural and recreational groups, as well as clothing subgroups," he asserted.

As for monthly, retail sales grew by 12.8 percent mtm. He said the increase occurred in the majority of groups, with the highest increase in clothing subgroups, information and communication equipment groups.

Then, food, beverages, and tobacco are in line with the Ramadan and Eid al-Fitr periods, retail discount strategies, and smooth distribution so as to encourage increased domestic demand.

In terms of price, respondents estimate inflationary pressure will decline in July 2023 and relatively stable in October 2023.

The General Price Expectation Index (IEH) in July 2023 was recorded at 118.5, lower than 124.5 in the previous period. Meanwhile, the IEH of October 2023 was recorded at 121.6, relatively stable from the previous period of 121.5.

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